The Australian Dollar finished higher in forex trading today despite trading in a very tight range. The Australian Dollar was higher after being boosted by the release of the unemployment rate by the Australian Bureau of Statistics stating that it has fallen to 4.1 percent, seasonally adjusted, adding to the speculation of another interest rate hike by the Reserve Bank of Australia (RBA) next month. Concerns were raised about the US economy after Federal Reserve chairman Ben Bernanke indicated further cuts to US interest rates overnight. ''The FOMC will be carefully evaluating incoming information bearing on the economic outlook and will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks,'' Dr Bernanke said. Easy Forex senior dealer Francisco Solar said the Australian dollar was trading in a ''very definable range''.
The Australian Dollar was higher in forex trading today despite trading earlier in a tight range. It traded at 90.42 US cents which is up from yesterday's 90.20 US cents. Mr Solar said the trend was still for the Australian dollar to go higher, given the possibility of not just one but two further interest rate rises in the coming months alongside future Fed rate cuts which will widen the interest rate differential further between the two nations. Australia's current interest rate is at 7 percent, currently a 12-year high. Their high borrowing rates has made it a popular choice for the carry trade investment.
If you have enjoyed this post please feel free to Subscribe to the Free Forex Trading HQ Newsletter.
We recommend trading forex with Easy-Forex.
