The Australian dollar pushed higher against the greenback after the the central bank kept rates on hold and sounded optimistic about global growth. It also expected a return to “reasonable” growth for the Australian economy.
The Aussie rose as high as US$0.7675 after the RBA decision. It bought US$0.7644 just before RBA’s annouuncement. In the accompanying monetary policy statement, the bank gave no indication that interest rates were likely to change in the foreseeable future, delivering a neutral bias at the conclusion of the statement.
The Aussie is currently the best performing G10 currency worldwide, benefiting from higher commodity prices, an uplift in global economic activity and signs that the domestic economy is also improving. The RBA Tuesday reiterated that a higher currency could “complicate” the Australian economy’s transition.
National Australia Bank said according to its recent modelling, the RBA may be getting uneasy about the Aussie’s recent strength.