The Australian dollar gained today after the central bank raised its inflation forecast and signaled that it may perform an interest rates hike “at some point” in the future.
The Reserve Bank of Australia increased its forecast for growth of consumer prices in 2011 to 3.25 percent from previously predicted 3 percent. The growth forecast remained unchanged at 4.25 percent. The hawkish statement allowed the Australian currency to rise after four day of losses against the US dollar.
AUD/USD rose from 1.0579 to 1.0689 today as of 9:30 GMT after posting the intraday high of 1.0733.
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