
On April 6, 2010, KVB Kunlun International forex analyst Su Zhiheng was interviewed by Phoenix TV, sharing his forecast and views on the trend of the Australian dollar following the interest rate hike by the Reserve Bank of Australia.
On April 6, 2010, the Reserve Bank of Australia announced, as expected, a 25 basis point rate hike to 4.25%, marking the fifth increase since last October. In its statement, the RBA said that global financial market conditions had improved compared to a year ago, concerns over the sovereign debt crisis appeared to be under control, the unemployment rate seemed to have peaked at a lower-than-expected level, lending in the real estate market was steadily expanding, and Asian economic growth continued to be "very strong." It expected domestic output growth over the coming year to exceed that of 2009, and stated that the day's rate hike was part of moving interest rates further back toward equilibrium levels, with inflation in 2010 expected to remain within the target range.
In the interview, Su Zhiheng noted that following the Australian rate hike, the Australian dollar rose from 0.9160 to around 0.9230, and after the European market opened, the Australian dollar reached a high of nearly 0.9250. He predicted that during the evening session that day, the Australian dollar might climb to 0.9280_0.9300, but said it was unlikely to break through the 0.9320 level.