The Australian dollar was moving largely sideways today as Forex traders hold breath, waiting for US politicians to demonstrate whether they are willing to find a compromise and avoid a default. Expectations of a positive trade report from China supported the currency.
House Speaker John Boehner proposed to extend the deadline for lifting the debt ceiling from October 17 to November 22 without any conditions attached to the decision. House Republicans will discuss the proposal with President Barack Obama today and it is a good sign that politicians are willing to talk. As Jay Carney, the White House press secretary, said:
The president is happy that cooler heads at least seem to be prevailing in the House, that there at least seems to be a recognition that default is not an option.
Analysts estimated ahead of today’s government report that China’s imports rose 7 percent in September from a year ago. China is the primary trading partner of Australia and the data bodes well for the economy of the South Pacific nation.
AUD/USD ticked up from 0.9450 to 0.9464 as of 1:38 GMT today. EUR/AUD was down a little from 1.4303 to 1.4286. AUD/JPY advanced from 92.75 to 93.14 after falling to 92.41 earlier.
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