Australian Dollar (FXA) Moves Higher

The Australian Dollar (AUD) was one of the biggest winners in currency markets today as commodity priced kept soaring and, at the same time, comments from an RBA official fueled further optimism about the strenght of the Australian currency. Commodities, gold and copper in particular as the Australian currency is very sensitive to the prices of those two, kept pushing higher as inflation remains a main worry among the investors, while the widespread tensions in Middle East also contributed to the rally. The AUD was also boosted from the comments made by the Reserve Bank of Australia Assistant Governor Philip Lowe, who said that the commodity prices would more likely remain high for a long period of time. He also mentioned that a further monetary tightening might be needed to keep inflation under control. As a result, the Australian Dollar hit a nine-month high against its Japanese counterpart (JPY), while trading significantly higher against the US Dollar (USD), the Euro (EUR) and other majors. The AUD/JPY soared from 83.80 to 84.37, a level last seen in May of last year. The AUD/USD also jumped, moving form 1.0030 all the way to 1.0120s, while the EUR/AUD fell from 1.3521 to 1.3422.