The Australian dollar managed to rise today even as fundamentals were not supportive, both domestically and overseas. It looks like monetary tightening of various central banks made the traders’ sentiment good enough to overcome adverse factors.
Australian import prices fell 0.6 percent and export prices were down 0.5 percent in the fourth quarter of 2013 from the third quarter. The HSBC Purchasing Managersâ Index for China dropped to 49.5 in January from 50.5 in December. The Aussie rose despite the negative data as traders were encouraged by interest rate hikes from various central banks across the world. Even quantitative easing tapering by the Federal Reserve did not prevent the rally.
AUD/USD rose from 0.8737 to 0.8777 and AUD/JPY advanced from 89.36 to 90.13 as of 19:30 GMT today.
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