Aussie dollar jumps as RBA leaves rates untouched and on soft currency remarks

The Australian dollar has made a sharp jump after the 7 April policy meeting which has left the official cash rate on hold at a record low of 2.25%.

The Reserve Bank of Australia also used softer words to describe the need for further slide in the currency for ensuring sustainable growth. The Aussie dollar hit a fresh six-year low last week.

Policymakers, however, said they expect growth to continue at a below-trend pace and further easing is appropriate over the period ahead.

About the Australian dollar, the RBA said the currency has declined noticeably against a rising US dollar over the past year, though less so against a basket of currencies.

"Further depreciation seems likely, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy," the RBA said.

Comparing the country's currency to the US dollar, RBA Governor Glenn Stevens had said on 20 March that in Australia, international competitiveness is improving, due to the declining Australian dollar.

The AUD/USD rose to 0.7701 on Tuesday (7 April) after the policy announcement from the previous close of 0.7592. The pair had traded as low as 0.7533 on 2 April, its lowest since May 2009.