The Australian dollar rose today, rallying for the fifth consecutive trading session versus the US dollar and the Japanese yen. The currency gained following the monetary policy decision of Australia’s central bank.
The Reserve Bank of Australia kept its main interest rate unchanged at 2 percent at today’s meeting and issued a policy statement that was considered rather hawkish by market participants. The Aussie climbed following the announcement, also getting support from speculations that the Federal Reserve will postpone a rate hike till the next year. Not all news was beneficial to the currency as Australia’s trade deficit widened unexpectedly in August, but this had little impact on the Aussie’s performance.
AUD/USD rose from 0.7079 to 0.7118 as of 13:19 GMT today, trading near the highest level since September 22. AUD/JPY gained from 85.27 to 85.72, also trading near the highest level in two weeks.
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