The Australian dollar gained against its US counterpart today even though news from Australia was not supportive for the currency at all. The Aussie, as well as its other major peers, fell against the Japanese yen.
The WestpacâMelbourne Institute Index of Consumer Sentiment fell 6.9 percent in June from May after rising 6.4 percent a month ago. On top of that, Glenn Stevens, Governor of the Reserve Bank of Australia, suggested in today’s speech that additional interest rate cuts are possible:
We remain open to the possibility of further policy easing, if that is, on balance, beneficial for sustainable growth.
Despite all the negative news, the Australian currency was very resilient, though it has been unable to beat the yen that was just too strong during the Wednesday’s trading session.
AUD/USD rallied from 0.7689 to 0.7760 as of 9:09 GMT today. At the same time, AUD/JPY edged down from 95.61 to 95.25, though the currency pair has bounced from the daily minimum of 94.50.
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