Aussie and US Dollars rally - One on good news and one for bad
Wednesday, July 29, 2009
USD
The Dollar recovered on Tuesday off its lowest level of the year against a basket of currencies, as a steep drop in US consumer confidence raised concerns over the pace of the economic recovery.
This brought back safe-haven flows into the USD and helped pick the Dollar up, after hitting new lows in the past week.
The ICE Futures US Dollar index, which measures the performance of the USD against six of the major currencies, rose to near 79. Earlier, the ICE had fallen to a low of 78.315, the lowest level it had seen since early December.
At 11:00PM GMT, the Dollar was up .43% to the Euro 1.4169, up .3% to the British Pound to 1.6437, up .15% to the Canadian Dollar to 1.0826, and up .5% to the Swiss Franc to .8284.
AUD
The Australian Dollar rallied in the Forex market, after Australia's Central Bank governor fuelled speculation that they might be raising interest rates in the coming months.
Reserve Bank Governor Glenn Stevens commented that the risks to the economy were more balanced and manageable, and that low interest rates could create a housing bubble crisis. This was the clearest sign that the ACB was through with its quantitative easing policy.
At 11:15PM GMT, the Aussie was up .7% to the USD to .8275 after hitting an 11 month high of .8338. The Aussie was also up 1.1% to the Euro to 1.7117, up .3% to the Japanese Yen to 78.38 and up .4% to the New Zealand Dollar to 1.256.
The Dollar recovered on Tuesday off its lowest level of the year against a basket of currencies, as a steep drop in US consumer confidence raised concerns over the pace of the economic recovery.
This brought back safe-haven flows into the USD and helped pick the Dollar up, after hitting new lows in the past week.
The ICE Futures US Dollar index, which measures the performance of the USD against six of the major currencies, rose to near 79. Earlier, the ICE had fallen to a low of 78.315, the lowest level it had seen since early December.
At 11:00PM GMT, the Dollar was up .43% to the Euro 1.4169, up .3% to the British Pound to 1.6437, up .15% to the Canadian Dollar to 1.0826, and up .5% to the Swiss Franc to .8284.
AUD
The Australian Dollar rallied in the Forex market, after Australia's Central Bank governor fuelled speculation that they might be raising interest rates in the coming months.
Reserve Bank Governor Glenn Stevens commented that the risks to the economy were more balanced and manageable, and that low interest rates could create a housing bubble crisis. This was the clearest sign that the ACB was through with its quantitative easing policy.
At 11:15PM GMT, the Aussie was up .7% to the USD to .8275 after hitting an 11 month high of .8338. The Aussie was also up 1.1% to the Euro to 1.7117, up .3% to the Japanese Yen to 78.38 and up .4% to the New Zealand Dollar to 1.256.
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