Australian Dollar Rises on Official Comments
The Australian dollar had a sharp rally today versus most of the 16 main traded currencies after a government official made positive comments regarding the future outlook of the Australian economy, creating speculations that interest rates will be hiked further in the South Pacific nation.
After the Reserve Bank of Australia Deputy Governor Ric Battellino affirmed on a statement that the Australian economy entered a ”new uprising”, stocks in the nation jumped, attracting also currency traders to bring more capital flows to the South Pacific region as Australia has been the first country to start a new series of interest rate hikes which is likely to be extended as the economy continues to produce favorable figures, necessary for the government to rise borrowing costs in a controlled and ”safe” manner.
Australia’s central bank is very likely to raise interest rates in 25 basis points next week, and the comments today ratify this hypothesis, according to most analysts. Due to its commodity export profile and not so
AUD/USD traded at 0.9295 as of 11:38 GMT from a previous rate of 0.9184 in the intraday. AUD/JPY traded at 81.41 from 81.12.
If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
November 27th, 2009 at 8:00 am
I would like to ask what would be the trend for AUD against JPY and USD next week (30/11-6/12) ? AUD is dropping so quickly today (27/11).
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Andrei Moraru Reply:
November 27th, 2009 at 8:18 am
As there are no sound fundamental factors for AUD to fall against USD and JPY, I believe that next we’ll see a rise in both AUD/USD and AUD/JPY.
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November 27th, 2009 at 1:09 pm
Not only there are no fundamental factors for the AUD to fall, but also the expectations regarding a new interest rate hike in December are likely to push the Aussie further
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November 27th, 2009 at 3:17 pm
Go aussie aussie!!!
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