The Australian dollar fell on Tuesday against all of its 16 major rivals after the governor of the central bank of the South Pacific nation said interest remains high, according to Bloomberg.
Governor Glenn Stevens with the Reserve Bank of Australia said the national economy has been assisted by the Aussie's consistent slippage, though he noted the monetary unit remains too high. The RBA left interest rates unchanged at an all-time low level on Tuesday. Market analyst David Ferranti with FXCM told The Wall Street Journal on Tuesday that the Aussie is enduring pressure from discussion about interest rates remaining too high.
"However, the Reserve Bank also reinforced expectations for interest rates to remain on hold despite the prospect of a continued deterioration in the Australian labor market, which in turn is supportive for the Aussie," the market analyst told the news source.
The Australian dollar moderately slipped roughly 0.1 percent against the U.S. dollar after having surged about 0.4 percent earlier on Tuesday against the greenback.
The RBA opted to leave borrowing costs at 2.5 percent on Tuesday, which was consistent with expectations, The Wall Street Journal reports.
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