Reserve Bank of Australia

The Reserve Bank of Australia (RBA) Raises Interest Rates by 25 basis points to 5.75 per cent; Aussie dolar spikes: The Reserve Bank of Australia (RBA) raised the interest rates for Australia by 25 basis points to a 5 year high and the first . Lifting the benchmark official cash rate to 5.75 per cent from 5.5 per cent credit tightening in 14 months. The Aussie dollar spiked 50 pips on the announcement of the interest rate rise at 9.30am AEST, hitting US$0.7660 cents.

The Aussie dollar has added more than half a US cent since Tuesday amid speculation that the US Fed may not be quite done lifting rates. The dollar gained momentum throughout the night supported by commodities and gold. At 7am the Aussie was at US 75.14¢, Tuesday's close was at US75.12¢. The US Fed reserve raised interest rates to 4.5 per cent the highest since April 2001. The statement issued by the Fed was scrutinised by investers to interpret any futher information indicating any future interest rate direction.

Australian dollar opened slightly weaker on Monday despite support from the recent commodity price surge - Market awaits speech: The Australian dollar opened slightly weaker on Monday despite support from the recent commodity price surge, while investors prepare for central bank governor Ian Macfarlane's address on Tuesday.

At 7am (AEDT), the local unit was trading at US74.83¢, below Friday's close of US75.13¢.

Over the weekend, it hit a high of US75.24¢ and a low of US74.93¢.