The Australian dollar retreated from its recent highs against the other major currencies in the Asian session on Tuesday, after the Reserve Bank of Australia maintained its key interest rate at a record low, as widely expected by economists, but signaled a further rate cut this year.

The policy board governed by Glenn Stevens decided to leave the cash rate at 2.00 percent. The bank lowered the rates by 25 basis points each in February and May.

The board judged that leaving the cash rate unchanged was appropriate at this meeting.

"Information on economic and financial conditions to be received over the period ahead will inform the Board's assessment of the outlook and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target," the bank said in a statement.

Policymakers observed that the Australian dollar has declined noticeably against a rising US dollar over the past year. Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices, the bank said.

The bank also noted that "monetary policy needs to be accommodative" as growth remains at rate below longer-term average.

The 'no' vote handed out by the Greeks in Sunday's referendum has added to recent concerns about Greece defaulting and exiting the eurozone.

Greece's often outspoken finance minister Yanis Varoufakis was replaced in a move that could help jump-start bailout talks between Greece and its European partners.

The markets now await the Euro Summit, due later in the day, convened by the European Council President Donald Tusk to discuss the situation after the referendum in Greece.

In other economic news, data from the Australian Industry Group showed that the construction sector in Australia moved further into contraction territory in June, with a Performance of Construction Index score of 46.4, down from 47.8 in May.

Monday, the Australian dollar showed mixed trading against its major rivals. While the Australian dollar fell against the U.S. dollar, the yen, the NZ dollar and the Canadian dollar, it held steady against the euro.

In the Asian trading today, the Australian dollar fell to an 8-day low of 1.1180 against the NZ dollar, from an early 4-day high of 1.0704. The aussie may test support near the 1.06 region.

Against the U.S. and the Canadian dollar, the aussie dropped to 0.7464 and 0.9447 from early highs of 0.7490 and 0.9478, respectively. If the aussie extends its downtrend, it is likely to find support around 0.72 against the greenback and 0.92 against the loonie.

Pulling away from early highs of 91.84 against the yen and 1.4727 against the euro, the aussie edged down to 91.54 and 1.4777, respectively. On the downside, 90.00 against the yen and 1.49 against the euro are seen as the next support level for the aussie.

Looking ahead, U.K. industrial production for May is also due to be announced in the European session.

At 3:00 am ET, Bank of France Governor Christian Noyer is due to speak about EU capital markets union at a financial sector conference in Paris.

In the New York session, Canada and U.S. trade balance, both for May and U.K. NIESR GDP estimate for June are scheduled to be released.

Eurozone finance ministers are due to meet to discuss Greece later in the day.

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