Australia was the first country to increase its borrowing costs after the global slump impacted the wealthiest nations around the globe setting most benchmark interest rates to record lows. The Australian dollar benefited from this unexpectedly positive scenario surging versus all 6 major traded currencies.
A part from the Reserve Bank of Australia interest rates hike that helped the Aussie to climb to its highest level in 14 months versus its U.S. counterpart. Several international news helped not only the Australian dollar, but also the kiwi to climb in foreign-exchange markets, as risk aversion declined today. Middle Eastern countries stated today through a newspaper that the U.S. dollar may stop being the main currency when it comes to oil trading, providing support for the Aussie and the kiwi to climb even further, adding to the optimistic scenario in Asian stocks and an increased demand for commodities globally.
Analysts could not be more optimistic towards the Australian dollar, since it has been the first country to raise interest rates, and this rate hike to be considered one of a series, the outlook for the Aussie remains bullish, mainly versus the U.S. dollar which is been affected by a negative sentiment worldwide.
AUD/USD traded at 0.8870 as of 11:08 GMT from a previous rate of 0.8739 yesterday.
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