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 ready to rally again

The gold price is moving higher again today for the second day in a row as doubts linger on the Future of rate hikes...

Pound slumps on interest rate talk

The pound slumped to its lowest level today post-election, following on from yesterday’s losses after comments...

Euro has reached a top

The Euro has continued to tumble today, still reeling from yesterday’s bullish Fed speech and some believe that further losses are on the cards...


Its a good day for gold

The gold price has surged higher in late European trading today, travelling in the opposite direction of the US dollar as a round...

Gold could surge higher

The gold price is taking a breather today after making a run for the $1,300 level on the back of US dollar strength as traders...

Opec cuts won't work

The oil price racked up its fourth straight day of gains today after Saudi Arabia and Russia said a deal to cut production...


Pound awaits Fed decision

The British pound has come under pressure late in the European...

Gold tanks on French election

The gold price has pulled back sharply today after yesterday's French election results which saw both...

Pound surges on election news

The British pound jumped to a 4 month high...

  


Share: