The Australian dollar was in focus early on Tuesday as the currency weakened during Asian trading hours ahead of the Rserve Bank of Australia policy decision. The Aussie bounced back and stabilized to $0.7528 after the RBA announced it held its main interest rate unchanged at 1.75 percent, which was widely expected by the markets.
The Australian dollar may likely stay under pressure ahead of the results of the general elections held in the country on Sunday.
The yen gained on safe-have status which pushed USD/JPY Down to 102.11, losing 0.4 percent in early Asia.
Economic data out of Australia showed exports rose 1 percent while imports rose 2 percent month-on-month for May, and the trade balance came in at a deficit of A$2.21 billion, wider than the A$1.5 billion seen. Australian retail sales for May rose 0.2 percent, slightly lower than forecast.
Date out of China showed the Caixin services PMI for June came in at 52.7, better than the expected 52.3, and up from 51.2 the previous month.
Data out of New Zealand showed the NZIER business confidence survey for the second quarter reached 19%, from 2% previously, with capacity utilization at 92.9 percent, a dip from 93.2 percent. NZD/USD traded at 0.7197, down 0.40%, after the survey.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.10 percent to 95.71.
Sterling remains traded around $1.3288, still close to the 31-year low of 1.3122 set on June 27, a level not seen since 1985. The pound will likely remain under pressure until there is more clarity regarding the process of the UK’s exit from the EU.