The Australian dollar was the best-performing major currency over the last month, strengthening by more than 5% against sterling and by 6.7% against the US dollar. Its gains over the last week amounted to a cent and a third against sterling and one and a half US cents. After a promising start last Friday the Aussie went on the retreat Monday through Wednesday.
Its main problem was the minutes of the Reserve Bank of Australia board meeting on 1 March, at which it was decided to keep the Cash Rate at 2%. The wording of the minutes suggested the board had become more inclined to cut the rate if inflation were to remain low.
On Wednesday evening the Aussie's retreat came to an end when America's Federal Reserve, implied that only two rate increases are now on the cards this year, rather than the four that were previously mentioned. All of the commodity-related currencies benefited.