The Australian dollar climbed to a one-week high after the central bank left interest rates unchanged at a record low and omitted mention of further scope to ease monetary policy.
The Aussie earlier pared an advance after a report showed retail sales grew less than predicted and the nation’s current account deficit was wider than estimated. The Reserve Bank of Australia left borrowing costs at 2.5 percent in line with the forecast of all 32 economists in a Bloomberg News survey. New Zealand’s dollar gained as private data showed the nation’s commodity export prices rose.
“The main surprise was that the RBA didn’t reinsert the definitive easing bias into this statement after stressing it in the minutes of their August meeting,” said Richard Grace, the Sydney-based chief currency strategist and head of international economics at Commonwealth Bank of Australia. “The Aussie may rally a little as a result.”
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