Aussie Dollar surges after central bank’s policy turn

Posted by Reuters

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The Australian dollar surged almost two percent on Tuesday after the country’s central bank dropped its bias towards easing interest rates and toned down its long-term call for the currency to weaken.

The dollar, yen and euro were all broadly stable, reflecting a drop in the volatility that has accompanied the flood of money out of emerging economies in search of traditional safe havens in the developed world.

The Aussie has fallen by almost a fifth in the past 12 months as a commodities boom expired, growth in China began to slow and the central bank campaigned for a weaker currency to help stir economic growth. – full article HERE