The Australian dollar rallied today as the nation’s central bank left monetary policy unchanged. The currency gained even though the statement mentioned the possibility of an interest rate cut in the future.
The Reserve Bank of Australia decided to keep its key cash rate at 2 percent at today’s policy meeting. Concluding the statement released after the gathering, Governor Glenn Stevens said:
Members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand.
Yet apparently the absence of additional monetary easing just yet was enough for traders to start buying the currency.
AUD/USD rose from 0.7145 to 0.7189 and AUD/JPY rallied from 86.27 to 87.03 as of 17:49 GMT today.
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