The marginal improvements in the country’s economic performance paved the way for RBA to hold on to current interest rates. The interest rate decision of the Reserve Bank of Australia then allowed the Australian money to gain yesterday.
AUD traders felt a sigh of relief as expectations for the RBA to not cut rates come true.
The favorable data from the Australian housing and unemployment report lifted the worries of another rate cut. The Australian economy is doing fairly well amidst signs of slowing despite positive outcomes.
Experts believe that the Australian central bank will slash quarterly GBP forecast this Friday. Some say that the RBA will move its expectations to just 1.4%, the slowest expansion pace in a decade.
Initially, the RBA forecasted a GBP growth of 2.25% this year. The bank also expects the economy to pick up to 3% in 2021.
However, traders are not certain whether the Australian money will hold on to its levels until the end of the year.
How High It Went
In the meantime, Australian money traders rejoiced as the currency surged yesterday in trading sessions. The only currency that managed to hold off against the AUD yesterday was the CNY.
The AUD to CNY trading pair only edged up by 0.04% or 0.0019 points yesterday. The pair reached levels from as low as ¥4.8327 to ¥4.8510.
Fortunately for the Australian money, it was able to rally up against the New Zealand dollar, Japanese yen, and US dollar.
First, the AUD to NZD pair went up by 0.28% or 0.0030 points, trading for NZ$1.0745 to NZ$1.0785.
Next, the AUD USD exchange rate climbed 0.52% or 0.0034 points, fluctuating around $0.6576 to $0.6928.
And the AUD JPY surged 0.75% or 0.56 points on Tuesday. The pair extended its gains from ¥74.67 to ¥75.42.
- Interested in trading the Australian dollar? Read WiBestBroker’s comprehensive review on Forex4You.