The Australian dollar is trading higher today after yesterday’s decision by the Reserve Bank of Australia to keep interest rates on hold.

At 7.30am (GMT) the Aussie dollar was trading at US74.44c, gaining almost US3c in the past week.

Although no changes in rates were expected from the RBA after last month’s rate cut, the tone of the following monetary statement was unusually quiet and gave no indication that any further rate cuts were on the way.

It follows on from a speech from US Federal reserve president Janet Yellen who also used a cautious tone on when the US central bank would raise interest rates again.

 “As for the AUD, it’s worth noting that the RBA is seemingly happy where the currency is right now” said Rodrigo Catril, currency strategist at the NAB.

With the USD vulnerable to the downside, post the dismal payrolls and Yellen’s cautious speech, the move to a neutral stance by the RBA has given the AUD a reason to trade higher and after yesterday’s pop the AUD is almost back to where it was before the RBA cut in May.” He added.

With no local data out today the Australian dollar is like to be driven by trade balance figures out of China.