The Aussie fell on Tuesday after the central bank released minutes of its latest policy decision that showed scope for a further cash rate cut.
A cash rate cut to a record low 2.25% in February needs to work its way through the economy, but a further cut may be appropriate, the Reserve Bank of Australia said in minutes from its March meeting.
Overnight, the dollar remained lower against a basket of other major currencies on Monday, as investors continued to lock in profits from the greenback's recent rally to 11-1/2 year highs and after disappointing U.S. data dampened optimism over the strength of the economy.
Official data earlier showed that U.S. industrial production rose just 0.1% in February, falling short of expectations for a 0.2% gain.
Market participants were now eyeing Wednesday’s Federal Reserve statement to see if it would drop its reference to being patient before raising rates and signal that it is ready to hike rates depending on economic data.
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