The Australian dollar is higher following the Reserve Bank’s steady as she goes statement after its monthly board meeting.

At 0700 AEDT on Wednesday, the local unit was trading at 87.42 US cents, up from 87.29 cents on Tuesday.

The RBA on Tuesday indicated it still is not inclined to raise the cash rate for the foreseeable future as it remains concerned about the high Australian dollar and the below trend growth of the economy.

BK Asset Management MD, Boris Schlossberg, said the statement from RBA governor Glenn Stevens contained no surprises and allowed the local currency to gain ground.

“The Aussie rallied in relief and rose to a high of 87.48 US cents before finally running out of steam,” he said.

“The RBA statement indicated that the central bank intends to remain resolutely pat keeping its policy unchanged for the time being.

“The RBA noted that the prudent course is for a period of stability in rates but once again stressed that the Aussie was above the estimates of fundamental value given the fall in commodity prices.”

Schlossberg says he expects the Australian dollar to stay in a broad range between 86 to 88 US cents for the time being as trading conditions in Asian markets look relatively stable.

AAP