THE Australian dollar pushed higher during Asia trade today, helped by a weaker greenback and after the Reserve Bank of Australia said interest rate cuts are starting to flow through the economy, buoying market expectations that the bank's easing cycle may be finished.
"There are a number of indications that the substantial easing of monetary policy during late 2011 and 2012 is having an expansionary effect on the economy," Glenn Stevens, RBA governor, said in a statement after the central bank held rates steady, as expected.
"Further such effects can be expected to emerge over time."
Those views helped the Aussie dollar to a session high of 1.0478 US cents before falling back.
The Aussie was at 1.0456 US cents just before close, compared with 1.0419 US cents early in Sydney trading today.
The RBA last cut its overnight target in December when it eased to 3.0 per cent, matching a low struck during the global financial crisis in 2009. Although the bank again said in its statement that it may cut further, market economists said the overall tone is that further easing is unlikely.
