Australian Dollar Gains as Risk Aversion Subsides

The Australian dollar rose today, erasing yesterday’s losses against the US dollar and gaining for the fifth straight session versus the Japanese yen. It looks like risk aversion caused by the events in France has subsided, making high-beta currencies attractive yet again.
Today, the Reserve Bank of Australia released minutes of its latest policy meeting. While the notes said that “the forecast for the Australian economy remained for growth to strengthen gradually over the next two years,” they also stated that there is “some scope for further easing of monetary policy.” Yet the prospects for monetary stimulus did not prevent the Aussie from rising as the risk sentiment on the market was improving.
AUD/USD gained from 0.7095 to 0.7121 and AUD/JPY rallied from 87.40 to 87.85 as of 14:04 GMT today.

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