The Australian dollar rallied today, ignoring the negative impact of the monetary policy meeting minutes released by the Reserve Bank of Australia. The positive market sentiment supported the currency.
The traders’ mood improved due to the signs that the eurozone may overcome its troubles, most importantly the debt crisis in Greece. The optimistic market sentiment was especially beneficial to commodity currencies as it halted the rout of prices for raw materials. The Aussie joined the rally together with other currencies even though the RBA called for depreciation in its minutes:
Members noted that the exchange rate had thus far offered less assistance than would normally be expected in achieving balanced growth in the economy and that further depreciation seemed both likely and necessary.
AUD/USD rallied from 0.7368 to 0.7438 (1 percent) and AUD/JPY rose from 91.62 to 92.12 as of 15:00 GMT today.
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