The Australian dollar fell from a record high against the US dollar on Tuesday, after official data showed that the country unexpectedly recorded a trade deficit in February, it’s first in almost a year.
AUD/USD hit a 4-day low of 1.0313 during late Asian trading, before consolidating at 1.0332. The pair is likely to find support at last Wednesday’s low of 1.0266 and resistance at 1.0416, all-time high reached on Monday.
The country posted a surprise deficit of AUD205 million ($212.74 million) compared with a revised figure of AUD1.43 billion ($1.48 billion) surplus in January, the Australian Bureau of Statistics said on Tuesday. Markets had expected that the country would post a surplus of AUD1.15 billion ($1.19 billion) in February. Separately, the Reserve Bank of Australia (RBA) kept the interest rate unchanged at 4.75 percent on Tuesday.
RBA said that the current economic policy is appropriate and inflation will be in line with targets in the year ahead. It also said that the disaster in Japan will affect Japanese production, but will have limited impact on broader Asia.
Nothing has really changed. It is pretty much a continuation of the view that they have been spelling out for the last few months: that growth has moderated a little bit and there is a bit of uncertainty on the back of the floods and Japan now. My inclination is they still have a mild tightening bias but at this stage don't see any great urgency to act on it,” Reuters reported, quoting Shane Oliver, chief economist, AMP Capital Investors.
The Australian dollar strengthened to 87.44 against the Japanese yen in early Asian trading, before easing to near yesterday's close of 87.13.
The Aussie was seen trading at a 4-day low of 0.9987 against the Canadian dollar, and near a 6-week low of 1.3435 against the New Zealand dollar.