The Australian dollar pared its losses versus the US dollar and the euro on speculations that the Reserve Bank of Australia would refrain from cutting the interest rates further. The Aussie traded near the four-month high against the greenback.
The mood of Forex market participants soared after US non-farm payrolls were released on Friday and the positive sentiment persisted today. The optimism added to the strength of the Aussie that was caused by speculations that the RBA would not decrease its borrowing costs. The interest-rate swaps data showed that investors bet on an 84 percent chance for the main interest rate to remain unchanged.
AUD/USD traded at 1.0585 as of 15:05 GMT today, following the drop from 1.0572 to 1.0535. EUR/AUD was at about 1.1732 after rising from 1.1714 to 1.1772.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.