Australian dollar is gaining ground today following yesterday’s somewhat dovish remarks from Ben Bernanke. Aussie is sensitive to movements in the dollar, as well as expectations for the global economy and gold prices (which are slightly higher).
Right now, the Aussie is heading higher against its major counterparts, thanks in large part to the latest comments made by Federal Reserve Chair Ben Bernanke. In his testimony before Congress, Bernanke indicated that stimulus efforts might be wound up next year, provided the economy in the United States remained on track for steady growth. However, he also made it clear that tapering was not on a set course, and that sent the US dollar lower — and made room for a higher Aussie.
Also likely to influence the Aussie is the latest announcement by China that the central bank plans to get rid of rate controls and allow financial institutions to set their own lending interest rates. The liberalization of Chinese monetary policy could mark a turning point for the Chinese economy, and that is something likely to impact the Aussie.
Australian dollar is also being influenced by higher commodities, especially gold, today.
At 13:57 GMT AUD/USD is up to 0.9211 from the open at 0.9171. EUR/AUD is down to 1.4242 from the open at 1.4296. GBP/AUD is down to 1.6563 from the open at 1.6604.
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