Aussie Reaches Parity with Greenback as RBA Holds Interest Rates

The Australian dollar climbed to parity with its US counterpart today as the global economy recovers, commodity prices advance and private investment in the nation increases, reducing the incentives for an interest rates cut.

The Reserve Bank of Australia kept its cash rate at 4.75 percent, continuing to attract speculators interested in so-called carry trades. The Bank’s Governor Glenn Stevens indicated that the global production strongly grew last year and said that the inflation would remain within the bank’s target range of 2 to 3 percent. Stevens also said that “the current stance of monetary policy remained appropriate in view of the general macroeconomic outlook”.

AUD/USD climbed from 0.9973 to 1.0072 as of 10:17 GMT today.

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