Australian Dollar Rallies Despite Dovish Minutes
The Australian dollar rose against safer currencies, but retreated against the euro today as the sentiment on the Forex market was positive for commodities with higher yield. The minutes of the last central bank’s policy meeting were a negative factor for the currency.
Some experts speculate that Spain may actually avoid asking a bailout. And the European Central Bank may refrain from buying bonds under its asset-purchase program. Adding to the positive mood, Spain exceeded its target at today’s bond auction.
The Reserve Bank of Australia released the minutes of its last policy meeting that explained the unexpected interest rate cut this month. The central bank cited falling commodity prices, the slowing labor market and the strengthening Aussie. All in all, the minutes were dovish and another cut cannot be ruled out.
AUD/USD was up from 1.0251 to 1.0286 and AUD/JPY advanced from 80.60 to 81.13 as of 21:27 GMT today. At the same time, EUR/AUD jumped from 1.2626 to 1.2722, the highest price since October 8.
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Earlier News About the Australian Dollar:
- Rising Employment Positive for Australian Dollar (2012-10-11)
- Aussie Rebounds on Europe & Commodities (2012-10-09)
- Australian Retail Sales Miss Expectations, Aussie Touches Monthly Low (2012-10-04)
- More Bad News for Australian Dollar (2012-10-03)
- RBA Slashes Main Interest Rate, Making Aussie Weaker (2012-10-02)