The Australian dollar rose to its highest level in two weeks against the U.S. dollar and the yen Wednesday after inflation data dented investors' expectations that Australia's central bank would cut interest rates before 2015.
The Australian dollar is at a three-week high following higher-than-expected inflation figures. At 0700 AEST on Thursday, the local currency was trading at 94.55 US cents, up from 94.40 cents on Wednesday.
At 7.30am (AEST), the Australian dollar was buying US93.73c, down from US93.92c at the close of local trading yesterday. Over the past 24 hours the currency has moved within a tight band of US93.70c to US94.02c.
The Australian dollar was the largest mover of the major currencies, gaining 0.69 percent to US$0.9455 after a higher-than-expected reading of a key gauge of underlying inflation in June in Australia dented market speculation of future rate cuts.
The Australian Dollar (AUD) to US Dollar (USD) exchange rate (AUD/USD) is currently trading down at 0.9385, after concerns over geo-political tensions have caused volatility for the Australian commodity currency.