By CountingPips.com
The Australian dollar has surged higher against the US dollar today in forex trading after the Reserve Bank of Australia increased its interest rate by 25 basis points and hinted more rate increases could follow. The Aussie-dollar pair (AUD/USD) has advanced by over approximately 85 pips today in trading to trade at its highest level since January 15th. The AUD/USD has now risen above the 0.9250 level in the U.S. session after opening the day around the 0.9197 
exchange rate level.
The pair started its ascension higher following the expected rake hike this morning as the Australian cash rate now stands at 4.25 percent, well above the close-to-zero rates in many other major nations. This was the fifth rate increase for Australia in the last six months and marked a 14-month high interest rate level.
Reserve Bank of Australia governor Glenn Stevens said in the statement accompanying the rate decision that Australia’s “output growth over the year ahead is likely to exceed that seen last year” and that the “rate of unemployment appears to have peaked at a much lower level than earlier expected.”
Stevens also said that interest rates have been below their average for borrowers and that “it is appropriate for interest rates to be closer to average.” He added that this was one step in the direction towards the “process” of getting rates near their average, prompting speculation rates could go higher as soon as next month’s meeting.
AUD/USD 1-Hour Chart – The Aussie today accelerating higher against the US dollar with help from the RBA’s interest rate hike to trading above 0.9275 today. The pair has climbed to its highest exchange rate since January 15th after trading as low as 0.8578 on February 5th.
