The Australian dollar rose today, gaining on the euro for the fourth consecutive day, following the release of the Monetary Policy Statement from the Reserve Bank of Australian and the construction index from Australian Industry Group.
The RBA was rather upbeat about economic growth in its statement, saying:
While the prospects for growth in economic activity are positive, there is room for even stronger growth.
At the same time, the central bank predicted that inflation would stay below 2% for the most part of the forecast period, opening door to further interest rate cuts, adding to the cut made earlier this week.
Meanwhile, the AIG Performance of Construction Index fell from 53.2 to 51.6 in July, though it remained in the expansionary territory.
AUD/USD climbed from 0.7630 to 0.7661 as of 11:05 GMT today. EUR/AUD dropped from 1.4587 to 1.4548.
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