The Australian dollar weakened against the other major currencies in the Asian session on Tuesday amid growing expectations of a rate cut by the Reserve Bank of Australia next week and weak iron ore prices.

The Reserve Bank of Australia’s interest rate decision is due on April 7. Economists expect another interest rate cut again to a new record low of 2 percent at the upcoming meeting. In February, it cut the cash rate down to a record low of 2.25 percent, while also indicating that further easing may be needed at its March meeting.

Meanwhile, the sliding iron ore prices and a slowdown in Chinese economy, also strengthened the case for a rate cut in April.

In other economic news, data from the Reserve Bank of Australia showed that private sector credit in Australia was up 0.5 percent on month in February, matching forecasts and slowing from 0.6 percent in January. On a yearly basis, credit climbed 6.2 percent – unchanged from the previous month but shy of forecasts for 6.3 percent.

Monday, the Australian dollar fell 1.20 percent against the U.S. dollar, 0.40 percent against the yen, 0.55 percent against the euro, 0.72 percent against the Canadian dollar and 0.37 percent against the NZ dollar.

In the Asian trading today, the Australian dollar fell to nearly a 2-week low of 0.7632 against the U.S. dollar, from yesterday’s closing value of 0.7652. The aussie may seek support near the 0.75 region.

The aussie edged down to 91.73 against the yen and 1.4174 against the euro, from yesterday’s closing quotes of 91.88 and 1.4150, respectively. If the aussie extends its downtrend, it is likely to find support around 90.50 against the yen and 1.44 against the euro.

Against the New Zealand and the Canadian dollars, the aussie depreciated to 1.0184 and 0.9692 from early highs of 1.0219 and 0.9716, respectively. The aussie is likely to find support around 0.95 against the loonie and 1.010 against the kiwi.

Looking ahead, Japan housing starts and construction orders for February is due at 1:00 am ET. Subsequently, German retail sales data for February is due at 2:00 am ET.

In the European session, German unemployment rate for February, final U.K. fourth-quarter GDP data , U.K. index of services for January, Eurozone unemployment rate for February and CPI for March are slated for release.

In the New York session, Canada GDP for January, U.S. S&P Case Shiller home price index for January, Chicago PMI for March and U.S. consumer confidence index for March are set to be published.

At 7:55 am ET, U.S. Federal Reserve Bank of Richmond President Jeffrey Lacker is expected to speak on Economic outlook in Richmond.

Dani?le Nouy, Chair of the ECB Supervisory Board, will deliver a speech before the European Parliament’s Committee on Economic and Monetary Affairs on Brussels at 9:00 am ET. At the same time, U.S. Federal Reserve Bank of Cleveland President Loretta Mester moderates a policy session at a conference in Stone Mountain, Georgia.

At 3:00 pm ET, U.S. Federal Reserve Bank of Kansas City President Esther George is expected to speak on the U.S. economy in New York.

The material has been provided by InstaForex Company –