The Australian dollar advanced on Tuesday after the Reserve Bank of Australia signalled a pause in its monetary easing cycle after delivering an aggressive cut in interest rates.
The central bank’s decision to lower interest rates by 100 basis points to 4.25 per cent after its policy meeting was widely expected. The Australian dollar rallied after the RBA said the combination of monetary easing, currency depreciation and fiscal stimulus represented a “significant policy stimulus” that would support demand over the year ahead.
