The Australian dollar rallied on Tuesday as markets pared back wagers on further interest rate cuts after comments from the central bank were not as dovish as many had been expecting. The Aussie rose half a cent to a session peak of $0.9173 from $0.9109, after stops were tripped. It last traded at $0.9166, showing a gain of 0.7 percent on the day.
Markets interpreted minutes of the Reserve Bank of Australia's (RBA) July meeting as showing less urgency to cut interest rates than some had anticipated. As a result, swap rates shaved the probability of a rate cut in August to 53 percent, from 63 percent. The kiwi dipped around a quarter of a cent to around $0.7795, but retraced losses to last fetch $0.7820. Near term support is seen at $0.7795 and below that $0.7730, with resistance at $0.7840 and then $0.7880.
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