The Australian dollar rallied against its US peer as the nation’s leading indicators rose, reducing incentive for the Reserve Bank of Australia to cut interest rates further.
The Conference Board Leading Index rose 0.3 percent in April after rising 0.1 percent in the previous month. The Aussie (as the Australian currency is nicknamed) advanced versus the greenback, but remained a bit soft against the yen, showing the same behavior as its New Zealand counterpart. Economists still believe that interest rate cuts are probable, but the positive data suggests that they may be postponed.
AUD/USD went up from 0.9481 to 0.9505 as of 13:15 GMT today following the earlier drop to 0.9432. AUD/JPY was a little lower from 90.38 to 90.30.
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