The Reserve Bank of Australia (RBA) may have removed its easing bias, but that's not enough to avert a slide in the Aussie dollar, analysts say.
After initial losses sparked by the RBA's decision to slash rates by 25 basis points to a record low of 2 percent, the Aussie rebounded to gain 1 percent against the U.S.dollar as the central bank painted a fairly upbeat picture of the economy.
"There's no explicit easing bias now, so we that's why had a bounce in the Aussie [Tuesday]. But there are still plenty of negatives for currency moving forward," Sean Callow, senior currency strategist at Westpac Bank told CNBC.
Monetary policy aside, there are overriding headwinds that will continue to put pressure on Aussie, said Callow, who expects the currency to end the year at $0.72, a 9 percent decline from current levels.