The Australian dollar rallied to the highest level since August against the US dollar and the Japanese yen. Worse-than-expected domestic economic data did not prevent the currency from rising.
Yesterday, the Federal Reserve released minutes of its September policy meeting. While the release was positive for the US currency initially, the situation has changed later as traders digested the news and decided that the tone of the notes was relatively dovish. This allowed currencies associated with risk to rally. The Aussie was among them even though growth of home loans in Australia trailed analysts’ estimates.
AUD/USD rallied from 0.7258 to 0.7338 and AUD/JPY climbed from 87.03 to 88.25 as of 11:05 GMT today.
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