SYDNEY/WELLINGTON, April 5 (Reuters) - The Australian dollar edged higher on Tuesday after the country's central bank signalled a further strengthening would be unhelpful, but stopped short of calling for an outright pullback.
The Aussie popped to a session high of $0.7635 AUD=D4 at one stage, from an early $0.7568, before settling back at $0.7592.
In a widely expected decision, the Reserve Bank of Australia (RBA) kept its cash rate steady at a record low 2.0 percent after its monthly policy meeting.
It also noted the Aussie had appreciated somewhat lately and said further currency strength "could complicate the adjustment under way in the economy."
The Aussie surged more than 7 percent last month - its biggest in more than four years - to a high not seen since mid-2015 at $0.7723.
Stephen Innes, senior trader at FX and CFD firm OANDA, said the market had been wagering on a stronger comment, such as a previously used phrase that a lower currency would be needed to help rebalance the economy.
"With little on offer, Aussie shorts have retreated," said Innes. "The Aussie dollar has reacted positively to the RBA decision."
The rebound in the Aussie failed to inspire a similar move in the New Zealand currency, which slid 0.7 percent to $0.6790 NZD=D4 .
Weakness in commodity prices remained a major drag on the Antipodean currencies and some traders expect the Aussie will succumb to the negative influence as European markets open.
New Zealand government bond prices 0#NZTSY= were a touch firmer, pushing yields 2 basis points lower.
Australian government bond futures were little changed with the three-year bond contract YTTc1 flat at 98.150. The 10-year contract YTCc1 edged up 1 tick to 97.5450.