The Aussie was last down 0.66 per cent to $0.6576 after the RBA kept rates at a 12-year high of 4.35 per cent on Tuesday and noted that economic data received since November had been broadly in line with expectations

The U.S. dollar regained some ground on Tuesday and hovered near a one-week high against a basket of currencies, while the Australian dollar dropped after its central bank left interest rates unchanged.

The Aussie was last down 0.66 per cent to $0.6576 after the RBA kept rates at a 12-year high of 4.35 per cent on Tuesday, as expected, and noted that economic data received since November had been broadly in line with expectations.

That left the Antipodean currency some distance away from Monday’s four-month high of $0.6690, which it reached on the back of the dollar’s decline over the last few sessions.

The Australian dollar has had a great run in recent weeks and was probably overbought over the near-term, said Matt Simpson, senior market analyst at City Index.

So we may be seeing a combination of profit taking following the fact of the Reserve Bank of Australia’s hold, and the closure of pre-emptive bets that the RBA may have delivered a more hawkish statement, Simpson said.

The drop in the Australian dollar also dragged the New Zealand dollar marginally down, with the kiwi last down 0.35 per cent to $0.6146.

Elsewhere, the dollar held broadly steady and pushed away from Monday’s three-month low against the yen. The dollar last traded at 147.10 yen, helped by a slowdown in core consumer inflation in Tokyo that put downward pressure on the yen.

The euro, meanwhile, stayed near a three-week low touched on Monday and last traded $1.0842, while the dollar index sat near a more than one-week high and was last at 103.60.

Sterling was little changed at $1.26345, some distance away from its recent three-month high.