Investing.com – The Australian dollar was up against its U.S. counterpart on Tuesday, reaching parity for the second time in three weeks, after Australia’s central bank unexpectedly increased its benchmark interest rate.
AUD/USD hit 1.0012 during European morning trade, the all time high; the pair subsequently consolidated at 1.0004, jumping 1.35%.
The pair was likely to find support at 0.9813, Monday’s low and resistance at 1.0012.
Earlier in the day, the Reserve Bank of Australia unexpectedly raised its Official Cash Rate by a quarter of a percentage point to 4.75% amid concern that stronger growth will cause inflation to accelerate. It was the bank’s first rate increase in six months.
“While the labor market is not as tight as in 2007 and 2008, some further strengthening would appear to be in prospect, judging by the trends in job vacancies,” the central bank said in a statment following the decision.
The bank also said a “moderation” of inflation for the past two years “is probably now close to ending.”
The Aussie was also up against the euro, with EUR/AUD shedding 0.67% to hit 1.3981.
Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing.
AUD/USD hit 1.0012 during European morning trade, the all time high; the pair subsequently consolidated at 1.0004, jumping 1.35%.
The pair was likely to find support at 0.9813, Monday’s low and resistance at 1.0012.
Earlier in the day, the Reserve Bank of Australia unexpectedly raised its Official Cash Rate by a quarter of a percentage point to 4.75% amid concern that stronger growth will cause inflation to accelerate. It was the bank’s first rate increase in six months.
“While the labor market is not as tight as in 2007 and 2008, some further strengthening would appear to be in prospect, judging by the trends in job vacancies,” the central bank said in a statment following the decision.
The bank also said a “moderation” of inflation for the past two years “is probably now close to ending.”
The Aussie was also up against the euro, with EUR/AUD shedding 0.67% to hit 1.3981.
Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing.