The Australian Dollar hits a 23 year high by reaching 91 U.S. cents, its strongest level since May 8, 1984.The U.S. Federal Reserve is expected to cut its interest rates when it meets next week thus assisting in increasing the demand for the Australian Dollar. According to RBC senior currency strategist Sue Trinh, expectations of another interest rate hike by the Reserve Bank of Australia is also helping raise the demand for the Australian Dollar in the foreign exchange. ''Continued bearish sentiment towards the US dollar was helping to support the likes of the Aussie and kiwi ... there's across the board US dollar weakness..And as far as RBC is concerned we see the risk of further tightening in (the March quarter) as well, taking the cash rate to 7.0 per cent, Miss Trinh said.
In the foreign exchange the Australian Dollar hit a 23 year high, trading at a high of 91.19 U.S. cents and a low of 90.78 U.S. cents. Australia's strengthening exchange rate may prove a blessing for consumers at the expense of our exporters whos products lose their international competitiveness on the high dollar.
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