FXstreet.com (Córdoba) - AUD/USD rallied today to 0.8920, posting a fresh 13-month high. The Aussie jumped on a rate hike by the Australian central bank of 25 basic points to 3.25% and also was favored by the rally in gold prices. The pair pulled back to 0.8872 and currently it trades at 0.8885/88, 1.20% above today's opening price.
The Australian Dollar is rising sharply for the second day in a row, accumulating an increase of more than 250 pips.
Walid Salah El Din, analyst at FX Recommends, affirms: The RBA (Reserve Bank of Australia) has seen that there is a materialized improving in the current economic conditions which is stimulated by the Chinese growth and demand for the Australian exports which is mainly the raw materials. The ties between the Chinese economy and the Australian economy were working in this way in the recent decades which could cap the negative impacts of the credit crisis on the Australian economy in favor of the Chinese demand.