The Australian Dollar declined on Tuesday as the central bank held interest rates unchanged.

At the time of writing, the Aussie was down 0.63% at $0.6578 as the Reserve Bank of Australia (RBA) kept rates at a 12-year high of 4.35% on Tuesday, as predicted, and said economic data received since last month was in line with forecasts.

This left the Australian Dollar quite a way away from Monday's four-month high of $0.6690, reached following the US Dollar's decline in recent sessions, Reuters reports.

"The Aussie has had a great run in recent weeks and was arguably overbought over the near-term," according to Matt Simpson, a senior market analyst at City Index.

"So we may be seeing a combination of profit-taking following the fact of the RBA's hold and the closure of pre-emptive bets that the RBA may have delivered a more hawkish statement."

The fall in the Aussie also impacted the New Zealand Dollar, which at the time of writing edged down 0.25% to $0.6152.

Elsewhere, the US Dollar was broadly steady, holding the Euro close to a three-week low hit on Monday, trading at $1.0835.

There was little change for Sterling at $1.2628, away from its recent three-month top, whilst the Dollar index – measuring the currency against major rivals – was at more than a one-week high of 103.61.

According to analysts, the Dollar's upward move was partly due to a reversal in its recent heavy selloff, which saw the index drop around 3% last month, the sharpest monthly fall in a year.

"I think it's maybe just a little bit of a reassessment as to the US Dollar having fallen too far, and too fast," stated Sean Callow, a senior currency strategist at Westpac.

In addition, against the Japanese Yen, the Dollar fell 0.25% to 146.82, not too far from a three-month low of 146.235 Yen from the prior session.

In China, the onshore Yuan stood at 7.1462 per Dollar, bolstered by Dollar sales by major state-owned banks.