Market Highlights
- AUD/USD reach fresh 2009 high
- RBA believe we have seen the worst of the slump
The Australian dollar has opened lower today after a positive run during yesterdays local session.
RBA believe we have seen the worst of the slump
RBA governor Glenn Stevens advised the impact of the downturn had not been as bad as first thought. Consumer confidence improved over the past six months with the help of interest rate cuts and government hand outs. He also indicated that the unemployment rate does not have to peak before the official interest rate rose, fuelling speculation the official interest rate had bottomed.
AUD/USD reach fresh 2009 high
The hawkish remarks helped the Aussie gain a cent against the greenback. It helped the Aussie break above 0.8300, levels we have not seen since September last year. But the gains were erased overnight as US equities lost ground. It has opened more than half a cent lower this morning. The cross rates have faired better with the Aussie pushing above 0.5000 against the GBP and above 78 against the Yen.
The Aussie looks shaky this morning but looks to be supported at 0.8220. With no domestic data out today it is likely to trade in a tight range ahead of tonight’s US data.
By Michelle Dri, Senior Corporate FX Dealer
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