The Australian dollar fell on Tuesday after the central bank decided to leave interest rates unchanged, as expected.
Reserve Bank of Australia on Tuesday left short-term interest rate at a record low of 2%, as expected, but also noted that it is ready to further easing of monetary policy if in the future the economic indicators will require so.
AUD/USD was traded at 0.7117, down 0.08%, while USD/JPY was at 120.81, shedding 0.14%.
The US Dollar Index, showing the relationship of the dollar to a basket of six major currencies, fell 0.05% to 99.00.
On Monday night, the dollar continued to fall against other major currencies after data showed that business activity in the US manufacturing sector fell again in January, and is now kept at the level that was last recorded in July 2009
The Institute for Supply Management (ISM) said that the purchasing managers' index rose to 48.2 last month from 48.0 in December. Analysts had expected the January figure will be 48.1.
Earlier, the US Commerce Department announced that the spending of physical persons in the last month have not changed, although experts predicted an increase of 0.1%. It also revised the November increase of expenses of natural persons from 0.3% to 0.5%.
The income of physical persons rose 0.3% (expected 0.2%), after increasing by 0.3% last month.
The Japanese currency is still under pressure after Bank of Japan Friday's decision to lower the deposit rate below zero under the program to combat deflation surprised the markets.
The move to negative interest rates should encourage commercial banks to use surplus of reserves, which are usually stored at the central bank for lending to businesses.
The Bank of Japan also said it would not ignore further rate cuts if necessary.
Meanwhile on Monday, official data showed that manufacturing activity in January in China decreased for sixth consecutive month.
In December, the index of business activity in the manufacturing sector in China fell from 49.7 to 49.4, falling even below the level of 50, which is the boundary between growth and slowdown.