The Aussie dollar has been on the resurgence today as trading in Asia rounds out a solid session which also saw Chinese and Japanese shares spike to multiyear highs. Much of the strength in the antipodean currency can be attributed to a surprise move by the Reserve Bank of Australia not to cut the cash rate despite market expectations which anticipated a 25 basis point reduction.
With an economy afflicted by lower commodity prices and weakness in China the RBA signalled that rates would stay as they were for the time being but left the door open to further interest rate cuts should economic growth and inflation continue to stagnate. The move has the AUD on a strong footing versus the dollar with a 35 basis point spike in the last 24 hours as the aussie now buys the greenback at the low .77 level.
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