(RTTNews) - Friday, the Australian dollar pared the gains it made in early Asian session against other major currencies. The Aussie thus declined from a new multi-month high against the greenback, new multi-week high against the loonie and a 4-day high against the euro. The Reserve Bank of Australia Governor, Glenn Stevens said it would be appropriate for the central bank board to start adjusting interest rates back towards normal levels provided the situation warrants no more exceptional monetary stimulus. In his opening statement to the House of Representatives standing committee meeting, Stevens said, "... there will come a time when the exceptional monetary stimulus in place at present will no longer be needed." Then it would be appropriate to do what it has done on past such occasions. "The timing and pace of those adjustments, if and when they come, will be a matter of careful consideration, taking into account all the relevant factors, including what might be happening with market interest rates," said Stevens in a half-yearly testimony in Sydney. The official cash rate now stands at 3%, the lowest level in 49 years. The central bank has reduced the rate by 400 basis points since last October. The Aussie jumped to a new multi-month high of 0.8480 against the U.S. currency and a 4-day high of 1.6874 against the euro at 9:00 pm ET Thursday. Thereafter, the Aussie weakened and it is currently trading at 0.8415 against the greenback and 1.6933 against the euro, compared to yesterday's close of 0.8427 and 1.6968, respectively. If the Aussie slips further, it may likely target 0.837 against the greenback and 1.701 against the euro. The French statistical office INSEE reported that payroll employment in principally market sectors continued to decline in the second quarter, but fell less markedly. In the second quarter, the decline in employment was 74,100 compared to 168,400 in the prior quarter. The Aussie declined against the Canadian dollar after hitting a new multi-week high of 0.9204 at 8:25 pm ET Thursday. As of now, the aussie-loonie pair is trading near yesterday's close of 0.9165 with 0.912 seen as the next target level. Against the yen, the Australian dollar is presently trading at 80.20, down from an early Asian high of 80.88. The near term support for the aussie-yen pair is seen around the 79.8 level. The pair was worth 80.40 at yesterday's close. Board members of the Bank of Japan said that capital expenditure - which has already plummeted during the current global economic slowdown - could fall further still, minutes from the July 14 and 15 monetary policy meeting revealed today.

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