The Australian dollar came under pressure on Tuesday after the Reserve Bank of Australia trimmed interest rates by a quarter point to a historic low of 2.75 percent to boost economic growth.
The board judged that a further decline in the cash rate was appropriate to encourage sustainable growth in the economy, consistent with achieving its inflation target, Reserve Bank of Australia Governor Glenn Stevens said in a statement.
The board previously observed that the inflation outlook would afford scope for easing further, should that be necessary to support demand. "At today's meeting the Board decided to use some of that scope," Stevens said.
The central bank expects inflation over the next one to two years to be consistent with the target.
Australia's house price index and trade data released early in the session failed to influence currency movement.
Data from the Australian Bureau of Statistics showed that Australia saw a trade surplus of A$307 million in March after recording a deficit of A$111 million in the prior month. A separate data showed that country's house price index rose 2.6% on year in the first quarter. Analysts were predicting a gain of 4.0%.
The aussie fell to 1.0178 against the greenback for the first time since March 4. A further breakout of the aussie-greenback pair from this mark could help it to reach the lowest level set on July 2012. The aussie may eye support around parity level.
Paring early gains, the aussie slipped to 1.1959 against the NZ dollar, a level not seen since October 2009. This is down 0.7 percent from Monday's New York session quote of 1.2043. The next support level for the aussie-kiwi pair lies around 1.18.
The aussie fell to a 5-day low of 1.2852 against the euro, down 0.78 percent, and is poised to seek next downside target level around 1.295. The euro-aussie pair was quoted 1.2752 at yesterday's close.
The aussie depreciated 0.67 percent against the loonie to hit a more than 3-month low of 1.0255. If the aussie extends its downtrend, near term support is seen at 1.02. At Monday's close, the pair was worth 1.0324.
The aussie fell to 100.84 against the yen, its weakest level since May 3 and was down 0.98 percent from yesterday's closing value of 101.84. On the downside, the aussie may breach the 99.00 level.
Looking ahead, German factory orders for March are due.
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