Australian Dollar Gains Against Majors After RBA Minutes

The Australian dollar rose after the release of minutes showing the central bank saw domestic economic growth overshadowing a “fragile” global outlook at its Aug. 7 policy meeting.

The so-called Aussie added to yesterday’s gains against most of its major peers as the Reserve Bank of Australia made no mention of intervening to curb the currency’s strength, which has persisted despite a decline in the terms of trade. The Australian and New Zealand currencies were also buoyed by speculation talks among European leaders this week will lead to stronger measures to counter the region’s debt crisis, boosting risk demand.

“The market was looking for a fair bit more commentary on the Aussie dollar itself following the monetary policy statement a week and a half ago as well as the statement accompanying the policy decision where the RBA seemed to ramp up its rhetoric about the currency,” said David Forrester, senior vice- president for Group-of-10 foreign-exchange strategy at Macquarie Bank Ltd. in Singapore.

via Bloomberg

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