The Australian dollar fell as much as 0.8 percent against a broadly firmer US dollar on Wednesday after a strong US manufacturing report, and was also helped lower by selling against the yen before a two-day holiday in Japan.
The Aussie was little changed immediately after the Reserve Bank of Australia (RBA) kept interest rates steady at 6.25 percent, as widely expected by financial markets.
"Most of the traders would have thought it was probably going to do some work around $0.8260, $0.8250 because it's held there three or four times on previous occasions," said Geoff Bowmer, director of foreign exchange at Macquarie Bank.
"They were putting fairly tight stop-losses on those purchases, just under $0.8260, $0.8250. Those stops have gone off and that's why were at $0.8230. "I don't think it's anything more than trading moves and maybe exaggerated in a thin market."
The Aussie dollar was quoted at $0.8245/50, compared with $0.8290/92 here late on Tuesday, according to Reuters data. Its range was $0.8220 to $0.8282. Against the Japanese currency, the Aussie fell back below 99 yen to be quoted at 98.58/68 yen, down from 99.08/18 here late on Tuesday. Its low was 98.51 yen.
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