The Australian dollar jumped and recovered its four-day loss as an impact of the Reserve Bank's hint that benchmark rates may soon rise up at some point.

Australia's currency rallied against all of its 16 major counterparts after Treasury Secretary Martin Parkinson said the local dollar will likely track the nation's terms of trade and stay persistently high for some time.

The currency of New Zealand also rebounded at today's trading against the yen after Auckland-based Fonterra Cooperative Group Ltd announced the mild autumn weather may help milk production reach a record in the season ending this month.

Analysts are optimistic that the RBA's minutes is an indication that an upbeat Australian economy is still in the horizon.

So far the news provided enough boost for the Aussie dollar as it climbed to $1.0608 as of 4:06 p.m. in Sydney from $1.0556 recorded yesterday in New York. The Australian currency also moved up 1.3 percent to 86.36 yen. New Zealand's dollar strengthened 1.1 percent to 63.67 yen. The so-called kiwi appreciated 0.3 percent to 78.22 U.S. cents.

RBA's Stance

In the minutes of the 3 May meeting, RBA bank authorities led by Governor Glenn Stevens agreed "if economic conditions continued to evolve as expected, higher interest rates were likely to be required at some point if inflation was to remain consistent with the medium-term target."

According to the minutes released today in Sydney, bank authorities saw the mildly restrictive stance as appropriate.

Nevertheless, the frozen benchmark rates pegged currently at 4.75 percent after seven adjustments has been an awry setting, too for the continuous mining boom that creates more jobs in the Australian economy.

"Members noted that the significant divergences between different sectors of the economy presented challenges for policy-making, but that monetary policy had to be set for the needs of the overall economy," the minutes showed.

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