The Australian dollar extended its gains against the US dollar this afternoon and was trading close to its intraday high of $1.0749.
Upon the announcement that the Greek parliament had passed its second austerity vote, which explained how it would implement the austerity plans, risk appetite increased, which added pressure to the US dollar. Greece is now eligible to receive its fifth tranche of emergency bailout funds from the EU and IMF, allowing it to pay its debt due on 15 July and prevent it from defaulting, at least for now.
With market sentiment drastically improving following the success of the Greek vote, and with risk appetite on the move, the US dollar has seen a sell-off this afternoon, allowing the commodity-based currency to trade higher in the afternoon session. The end of QE2 in the US today could lead to volatility in trading between the pair. At 3.30pm (London time) the AUD/USD was trading almost 0.6% higher at $1.0732.