The Australian dollar advanced today as the Reserve Bank of Australia left its key cash rate unchanged. Such decision was expected by market participants, but was welcomed nevertheless as it means that the RBA is rather confident in economic growth.
The RBA left its main interest rate at 3.5 percent today. Bank’s Governor Glenn Stevens explained that the global economy looks a little better, but Europe remains the major risk for economic growth. As for the economy of Australia, Stevens said:
Most indicators suggest growth close to trend overall. Labour market data show moderate employment growth, even with job shedding in some industries, and the rate of unemployment has thus far remained low.
AUD/USD rose from 1.0563 to 1.0587 and AUD/JPY advanced from 82.66 to 82.98 as of 11:08 GMT today.
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