The Australian dollar is virtually unchanged against its US counterpart after its fall to a three-week low following the Reserve Bank’s announcement that it was keeping its interest rate on hold.
At 0635 AEST on Wednesday, the Australian dollar was worth 75.65 US cents, down fractionally from 75.68 US cents on Tuesday.
The local currency fell sharply after the RBA on Tuesday said it was keeping its cash rate at the record low at 1.5 per cent.
Westpac’s Imre Speizer said the Australian dollar had underperformed in the offshore session, with the RBA board’s commentary not inspiring optimism.
“Underperformer AUD extended its post-RBA losses from 0.7580 to 0.7545 before rebounding to 0.7570,” he said in a note on Wednesday.
“The less upbeat tone from the RBA may linger; AUD’s next downside target 0.7500 (9 March low).”
AAP
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