Interest rates unchanged in Australia

Australia's central bank skipped a chance to raise interest rates on Wednesday, confounding speculation it would tighten to cool domestic demand as insurance against future inflationary pressures.

The Australian dollar slid while bond futures rallied after the Reserve Bank of Australia (RBA) left its cash rate unchanged at 6.25 % following its monthly policy meeting on Tuesday.

AUD/USD traded between 80.64 and 81.31.

Far East equities rose

Australian shares hit an all-time high on Wednesday after its central bank kept interest rates on hold.

South Korean shares touched a record as upbeat U.S. home sales data boosted the outlook for its no.2 export market.

Tokyo's Nikkei gained 1.5 %, led by gains in Honda Motor and other exporters.