Australian dollar soars
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The Australian dollar has surged against its US counterpart which has fallen ahead of key Congressional testimony by Federal Reserve chair Janet Yellen, after a Donald Trump Jnr e-mail came to light.
At 0635 AEST on Wednesday, the Australian dollar was worth 76.34 US cents, up from 76.18 US cents on Tuesday.
BK Asset Management FX managing director Kathy Lien said the US dollar had reversed it gains, and had fallen particularly against the yen and the euro, though not sterling.
The dollar fell to a more than one-week low against a basket of major currencies on Tuesday, after US president Donald Trump’s eldest son released an email chain citing Russian support for his father before last year’s US election.
The greenback’s movements, and therefore its stance against the Aussie dollar, over the next few likely will depend on the tone of Federal Reserve chair Janet Yellen’s congressional testimony.
“The (US) dollar will rise if she emphasises the need for continued gradual removal of policy accommodation and will crash hard if she is noncommittal about additional tightening,” Lien said in a Wednesday morning note.
FX Techs’ Niall O’Connor says it is likely the local currency will reverse its course.
“AUD/USD is impulsively reversing from the important .7725/50 area, as the momentum setup suggests a shift is due,” he said in a morning note.
Questions & Answers
Q.What is the main reason for the Australian dollar's recent surge against the US dollar?
What is the main reason for the Australian dollar's recent surge against the US dollar?
The Australian dollar surged because the US dollar fell. This decline followed the release of an email involving Donald Trump Jnr, and occurred ahead of Federal Reserve chair Janet Yellen's key Congressional testimony.
Q.How much was the Australian dollar worth against the US dollar at 0635 AEST on Wednesday?
How much was the Australian dollar worth against the US dollar at 0635 AEST on Wednesday?
At 0635 AEST on Wednesday, the Australian dollar was valued at 76.34 US cents. This represented an increase from its value of 76.18 US cents on the previous Tuesday.
Q.What factors might influence the US dollar's performance in the near future?
What factors might influence the US dollar's performance in the near future?
The US dollar's performance, and its position against the Aussie dollar, will likely depend on Federal Reserve chair Janet Yellen's congressional testimony. Her emphasis on continued policy removal or noncommittal stance on additional tightening will be key.
Q.What is the forecast for the Australian dollar's movement, according to FX Techs' Niall O'Connor?
What is the forecast for the Australian dollar's movement, according to FX Techs' Niall O'Connor?
Niall O'Connor from FX Techs believes the local currency is likely to reverse its course. He notes that the AUD/USD is impulsively reversing from an important area, suggesting a shift is due.