The Australian dollar rose to one-month highs after the Reserve Bank of Australia held policy steady as expected, and said its decision was consistent with sustainable growth.

The Reserve Bank of Australia have left interest rates on hold and the Aussie $ has rallied strongly 7 June 2016

The decision was largely as expected but that hasn't stopped the Aussie $ from enjoying a relief rally with AUDUSD posting one-month highs of 0.7420 so far.

Nothing of real note in the RBA statement that I can see but the decision is enough to have shorts running for cover. The nod to rising housing prices is still tempered by talk of low inflation remaining for "some time" but overall the statement is less dovish than some might have expected in the wake of last month's surprise cut.

The dollar edged up but still wallowed close to four-week lows against a basket of currencies on Tuesday, after Federal Reserve Chair Janet Yellen's remarks failed to toss a lifebuoy to the recently foundering greenback.

While Yellen remained relatively optimistic about the overall U.S. economic outlook and said the Fed would hike interest rate hikes, she gave no fresh hints about timing, and called last month's U.S. jobs data "disappointing."

The dollar has been under pressure since the U.S. nonfarm payrolls report on Friday showed the slowest job growth in more than five years in May, quashing expectations for a near-term U.S. interest rate hike.

Even before Yellen spoke, U.S. interest rates futures implied traders had all but priced out any chance the Fed will raise rates at its policy meeting next week.

Against the yen, the dollar reversed its earlier losses and rose 0.2 percent to 107.81 yen, pulling away from the previous session's low of 106.35, its weakest in a month. It remained well shy of levels above 109 yen, where it stood as recently as Friday.

Earlier on Tuesday, Japanese Finance Minister Taro Aso told reporters that he would refrain from commenting on Japan's possible response in the currency market if the yen were to rise further.

EUR / USD: during the Asian session, the pair was trading in the $ 1.1350-70

GBP / USD: during the Asian session, the pair briefly rose to $ 1.4660

USD / JPY: during the Asian session, the pair is trading in the range of $ 107.20-107.90

Based on Reuters materials