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Forex - AUD/USD surges to 9-day high on RBA rate statement

Published 02/01/2011, 02:47 AM
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Investing.com – The Australian dollar climbed to its highest level in nine days against its U.S. counterpart on Tuesday, after the country's central bank kept rates steady but signaled more rate hikes were likely on the way.

AUD/USD hit 1.0046 during late Asian trade, the pair’s highest since January 19; the pair subsequently consolidated at 1.0037, gaining 0.65%.

The pair was likely to find support at 0.9864, Monday’s low and resistance at 1.0076, the high of January 19.

The Reserve Bank of Australia left interest rates unchanged at 4.75% for February, in a widely expected decision.

However, the bank indicated that devastating floods in Queensland and Victoria states over recent weeks had not significantly reshaped an economic outlook that already saw the bank increase interest rates seven times in its previous 14 meetings.

The Aussie was also higher against the euro, with EUR/AUD shedding 0.32% to hit 1.3687.

Later Tuesday, in the U.S. the Institute of Supply Management was to publish data on manufacturing growth.

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