Australian dollar tacks on

On Tuesday, the Australian dollar steeply ascended after Australia’s major financial institution held rates at a record minimum, dashing speculation it might ease policy in response to a below-par outcome of inflation.

The Australian dollar last surged by 0.7% hitting $0.7035 after the Reserve Bank of Australia made up its mind to hold its cash rate at 1.50%. Ahead of the policy verdict, a slim majority of financial analysts interviewed by Reuters had hoped Australia’s major bank would keep rates on hold, despite calls for an easing intensified after dismal first-quarter inflation.

While the RBA kept policy on hold, it generally welcomed future cuts if the jobs market didn’t manage to push unemployment down as retailers experienced their worst quarter for seven years.

Versus the Japanese yen, the Australian dollar last rallied by 0.5% hitting 77.82 yen.

In addition to this, the evergreen buck kept mostly to familiar ranges versus key counterparts, even as remarks from top American trade statesmen that China had drifted away from trade-related commitments put pressure on American bond gains as well as stock futures.

Versus a group of its main counterparts, the USD index slumped by 0.1% being worth 97.409, having concluded the previous trading session almost intact.

Eventually, futures for the S&P 500 headed south reacting to the remarks. American 10-year Treasury bond gains reached their lowest value since May 1.

The evergreen buck headed south a bit versus the common currency and the UK pound on Tuesday, although its moves versus those currencies were much less pronounced than the Australian dollar’s moves.

The common currency last hit $1.1210, adding by 0.1% on the day. As for the UK pound, it surged by 0.2% reaching $1.3122.