The Australian dollar moved up against the greenback with an
increase of 0.3 % to 93.52 U.S. Cents.
The expectations of the economists on the increase in the
core consumer prices moved up by 2.9% in the first quarter. This is much higher
than the 2.6 % gain in the previous period.
The RBA is expecting the inflation to remain constant for
the next 2 years. In a meeting on April 1, the central bank has stated that the
interest rates are to be kept steady. The annual inflation expected by RBA is
around 2 to 3 %.
In a statement by Stan Shamu, a market strategist at IG Ltd. In Melbourne, revealed that the RBA shall remain fairly neutral until the
prices starts hitting high. The Australian dollar received its short term
support from the conditions prevailing now.