The Australian Dollar this week has been quite volatile. For those who have been short would have been celebrating! Obviously the Aussie has reacted to the ever increasing interest rate differential between The Australian Interest Rates (5.50%) and the newly raised US interest rates (4.75%).
On Thurdsday, the dollar opened half a cent stronger with a spike in the gold price. So at 7am (AEDT) the Aussie was at US70.73¢, compared to Wednesday's close of US70.24¢. The range of trade during the night was volatile: with a high of US70.78¢ and a low of US70.16¢. Gold for April delivery was kicked higher by $US6.30 to $US573.30 an ounce overnight.
Most traders would have already been long on the US dollar. The US Fed FOMC statement released on Tuesday lifted US rates from 4.5 per cent to 4.75 per cent with a statement giving the impression of further rate rises in future. It is the fifteenth rise in a row and the move was widely anticipated. On that day the New Zealand Dollar, Japanese Yen and the Euro all fell on the back of the Federal Open Market Committee's (FOMC) accompanying statement.
We recommend trading forex with Easy-Forex.
