AUD/USD shoots towards 0.7600 as RBA keeps interest rate at 0.1%

The AUD/USD pair has surged strongly near 0.7580 as the Reserve Bank of Australia (RBA) has kept the interest unchanged at 0.1%. In the early Asian session, the asset was consolidating in a narrow range of 0.7536-0.7548.

An unchanged monetary policy by the RBA was highly expected along with a less-dovish stance as inflation in the world economy is soaring faster while the growth rate is not advancing proportionally, thanks to the Ukraine crisis. In March’s monetary policy, RBA Chair Philip Lowe dictated that the market should brace for a 10 basis point (bps) interest rate hike this year at most to contain the roaring inflation. The RBA policymakers don’t see any price pressure that should compel the central bank to elevate interest rates. Also, the soft labor market is not allowing any requirement to gear up borrowing rates soon.

The antipodean has been performing strongly against the greenback in the past few trading sessions amid rising commodity prices. Australia, being a major exporter of food products, iron ore, energy, and other base metals has been a performer on higher inflows due to elevated commodity prices.

Meanwhile, the US dollar index (DXY) has overstepped the featured resistance figure of 99.00 amid the hangover of the upbeat labor market in the US. Investors shrugged off the lower US Nonfarm Payrolls and have underpinned the slippage in the Unemployment Rate. The US jobless rate landed at 3.6% lower than the market consensus of 3.7% and the prior figure of 3.8%, which has raised the chances of a 50 basis point (bps) interest rate hike by the Federal Reserve (Fed).