(Jun 7 Reuters) The Australian dollar gained 1 percent against its U.S. counterpart on Tuesday after the Reserve Bank of Australia kept interest rates on hold and appeared to raise the bar on further monetary easing.
The Aussie shot up to $0.7443, its highest since May 6, and climbed nearly 1 percent against the yen, euro and the New Zealand dollar. The RBA kept the cash rate at a record low 1.75% at its monthly review, after curring last month for the first time in a year.
While that was expected, many traders were disappointed that the statement did not give an explicit easing bias, resulting in unfavorable bets being unwound and the spot rate being squeezed higher.
Click on the link below to see the full story from Reuters: (by Anirban Nag)