The Australian dollar retained weakness Tuesday after the central bank held interest rates steady as expected.

AUD/USD traded at 0.9295, down 0.40%, while USD/JPY traded at 104.83, up 0.46%, after hitting 104.85, the higherst level since Jan. 23.

As expected, the Reserve Bank of Australia kept rates at a record low 2.5%, repeating language of a period of stability.

Australia's July building approvals rose 2.5%, beating expectations of a 1.5% gain and the second quarter current account deficit reached A$13.7 billion, a bit less than a deficit of A$14.0 billion expected.

Japan's July average cash earnings rose 2.6%, a fifth straight gain.

Overnight, the pound remained higher against the dollar in light trade, but gains were capped by an earlier report showing that activity in the U.K. manufacturing sector expanded at the slowest pace in 14 months in August.

Meanwhile, investors continued to monitor the situation in Ukraine after European Union leaders threatened over the weekend to impose a new round of sanctions on Russia if Moscow does not end its support for the pro-Russian rebels.

Earlier Monday, Ukrainian troops lost ground around the eastern city of Luhansk following overnight clashes with pro-Russian rebels.

The conflict broke out in March after Russia's annexation of Ukraine's Crimea region.

Slowing growth in the euro area looked likely to add to pressure on the European Central Bank to implement fresh measures to shore up the faltering recovery in the region, ahead of its upcoming monetary policy meeting on Thursday.

Start Trading
Follow us in social networks!
Live Chat
Leave feedback