Today, the Australian dollar traded near the highest level since June as Forex market participants speculated that the central banks of Australia and the United States will not make changes to their monetary policies in the near future.
Economists think that chances for an interest rate cut from the Reserve Bank of Australia are not that big. At the same time, it is hard to believe that the Federal Reserve will dare to raise borrowing costs this year. The difference between rates in Australia and the USA helps to support the attractiveness of the Aussie to carry traders.
Today’s non-farm payrolls are expected to be good and if that is the case chances for stimulus reduction from the Fed increase. Yet the US government shutdown disrupted plans of US policy makers, if they had any, for monetary tightening and even good employment data will likely not be enough to make the US central bank tamper quantitative easing soon.
AUD/USD was at 0.9644 as of 2:34 GMT today. EUR/AUD traded near 1.4164 and AUD/JPY ticked up from 94.75 to 94.79.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.
Be First to Comment