Australian dollar jumps after Fed holds rates4

18 September, 2015

The Australian dollar is trading higher today after the US Federal Reserve refrained from lifting interest rates, sending the local currency on a wild ride with a run towards the US73c mark.

At 8.57am (GMT) the Aussie dollar was trading at US72.38c up from US71.61c in yesterday’s trade.

Shortly after the US Fed’s decision on rates, the Australian dollar traded as high as US72.75c before dropping back down through the US72c mark after the following monetary statement by Fed president Janet Yellen.

Dr Yellen noted that the Fed was not satisfied with weak inflation which is currently well below the target of 2% and they would also like to see more strength in the employment market before pulling the trigger on rates.

Despite the setback, she mentioned that the market should brace for an interest rate rise at some time in the nearest future with the market now pricing in a 100% chance of a hike by January.

In a speech this morning to the house of representatives RBA governor Glenn Stevens sounded upbeat by noting that although the economy is not rising as fast as anticipated, it is still growing at 2% and taking into account the big problems with Australia’s biggest trading partner China, the country will come out of this episode okay.

Some analysts do not buy Mr Stevens story with 50% of analysts predicting that the RBA will have to cut rates further in order to boost the economy.


Source link  
Gold remains supported

After falling sharply on Monday, the gold price has stabilized over the last 2 days and it looks as if for now, the precious metal has found strong...

US dollar hit from 2 sides

The US dollar is under pressure against the major currencies today as fears grow over the possibility of tax reform as well as disastrous results...

Australian dollar has further to fall

The Australian dollar is under further pressure today after yesterday’s spectacular plunge which seems to have put to bed any interest rate hike...


Gold technical review

The gold price has finally stabilized today after suffering 3 days of heavy losses and we may be in the process of a double bottom formation. It seems as if the news out of Spain...

Oil set to rebound

The Oil price has finally settled in today’s trading after a week of heavy losses on the back of profit taking and some say that the price may once again head higher. Following a solid month of gains...

New sanctions won't hurt gold

The gold price is stable in early Asian trading today after falling heavily yesterday after a planned missile test from North Korea failed to eventuate...


Gold down but not out

The gold price has bounced back in today’s trading after racking up losses on the back of a deal between the white house and Congress and some say yesterday was just a small...

Oil to remain capped at $50

The oil price is making another run for the $50 mark today over concerns about the damage that Hurricane Harvey has caused, but below it will struggle...

Gold down on profit taking

Gold has pulled back in the last 3 days on the back of profit taking but by no means is the rally over with so much uncertainty around us at the moment...

  


Share: