The Australian dollar rallied to five-week highs on the US dollar and two-month peaks against the euro on Tuesday after the Reserve Bank of Australia (RBA) held rates steady, though it still left the door open for more stimulus if needed.
The Aussie rose more than half a cent to a session high of $1.0436, up 0.6 percent on the day. Martin Whetton, a strategist at Nomura, expected a climb to $1.0500-$1.0600. Key resistance is found at $1.0443, the 61.8 percent of the September-October move, with a break above opening the way to a run to $1.0625.
The RBA left rates unchanged at 3.25 percent at its monthly policy meeting, saying higher inflation at home and an improving global economy meant the current monetary policy setting was appropriate.
Likewise against the kiwi, the euro slipped to NZ$1.5443 , its lowest since late August. Key support seen at NZ$1.5427, the 23.6 percent of the May-August move.
The New Zealand dollar edged up to $0.8268, from $0.8251 early, taking advantage of the Aussie's momentum. The Aussie also gained on the kiwi, holding last around NZ$1.2590, from NZ$1.2550 earlier.
Comments
Comments are closed.