Forex – Aussie and kiwi move higher after RBA holds

Investing.com – The Australian and New Zealand dollars were higher against their U.S. counterpart on Tuesday, after the Reserve Bank of Australia left interest rates unchanged and as higher oil prices supported the commodity currencies.

AUD/USD gained 0.95% to 0.7436, the highest since May 6.

In a widely expected move, the RBA held its benchmark interest rate at 1.75% on Tuesday.

In its policy statement, the RBA said that inflation was expected to remain low “for sometime” due to subdued growth in labor costs.

Meanwhile, oil prices remained higher after rallying on Monday, helped by supply disruptions in Nigeria.

NZD/USD edged up 0.10% to trade at 0.6928.

Sentiment on the greenback was vulnerable after Federal Reserve Chair Janet Yellen said on Monday that she was optimistic about the overall U.S. economic outlook and said the central bank plans to raise interest rate hikes, but she gave no indication on the timing of the rate hikes.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 93.95, close to the previous session’s three-week lows of 93.74