The Australian dollar has risen sharply on the back of the latest interest rates decision where they chose to leave rates unchanged.
AT 5.23pm (GMT) the Aussie dollar was trading at US72.10c up from US71.64c in yesterdays close.
The local currency rallied hard following the decision by the RBA to keep rates on hold at 2% while governor Stevens refrained from talking down the Australian dollar and mentioned that the recent fall in the currency is helping the slump in the commodity prices.
“At its meeting today (on Tuesday), the board decided to leave the cash rate unchanged at 2%, “Overall, the economy is likely to be operating with a degree of spare capacity for some time yet, with domestic inflationary pressures contained.” Stevens said.
“The Australian dollar is adjusting to the significant declines in key commodity prices,” he added.
The Focus of the Aussie dollar will Thursday’s FOMC minutes from the US Federal reserve with investors looking for signs on the timing of an interest rate rise which may see the Aussie dollar give up some of its recent gains.
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