Australian dollar lost most of its gains yesterday against the US counterpart today, after a dip in Australian growth data for the fourth quarter.
Australian GDP grew 0.4% in the fourth quarter q/q, down from 0.7% in the previous reading, and missing expectations of 0.5%, while the GDP rose 2.4% y/y, also down from 2.9%, and missing forecasts of 2.5%.
AUD/USD dipped to 0.7801 from the opening of 0.7826, with a session-high at 0.7828, and a low at 0.7771.
Reserve Bank of Australia governor Philip Lowe and other policymakers voted to hold interest rates unchanged at the record low 1.5% yesterday in line with expectations, as the bank seeks to prop up employment and wages.
The RBA believes that the policy gap between it and other global central banks helped nudge aussie down and underpinned growth and inflation, however Australia still faces risks such as high household debt and lower spending.