SINGAPORE/LONDON—The U.S. dollar held steady on Tuesday ahead of testimony before Congress by Federal Reserve Chair Jerome Powell, while the Aussie slid after the Reserve Bank of Australia hinted it might nearly be done with monetary tightening.
The Australian dollar was the day’s major G10 mover, sliding as much as 0.79 percent to $0.6679, its lowest since late December even as the central bank raised its cash rate as expected by 25 basis points to 3.60 percent, the highest in more than a decade.
But in a dovish move, the RBA changed a reference to further rate “increases,” saying instead that “further tightening” would be needed, suggesting the central bank might be nearing the end of its cycle of increases….