AUD Rallys After RBA Raises Interest Rates

The Australian Dollar surged after the central bank unexpectedly raised interest rates to 3.25% and promised further rate hikes going forward. The US Dollar fell against most major currencies on rumors that the Gulf States were leading talks about replacing the greenback as denomination for oil prices with a basket of top currencies.

Key Overnight Developments

• Aussie Dollar Soars as RBA Raises Interest Rates, Says More Hikes Ahead
• Australia’s Trade Deficit Narrows as Oil Imports Plunge, Outpacing Export Drop
• USD Drops on Rumors Gulf States Leading Plans to Change Oil Price Denomination
Critical Levels

The Euro pushed higher in overnight trading, retaking the 1.47 figure and adding as much as 0.5% against the US Dollar. The British Pound followed suit, adding as much as 0.4% against the greenback. We remain short GBPUSD at 1.6617 and EURUSD at 1.4710.