The Australian dollar continued its 3-day race against its US counterpart today, following the dovish FOMC statement and in expectance of the interest rate hike in Australia.
The Aussie rose against the greenback by about 0.7 percent and added slightly against the euro today, while trading near the open level against the Japanese yen. The US dollar is falling against almost all
Credit swap rates forecast 25 basis points increase of the current 4.75 percent cash rate of Australia during the next 12 months. The inflation there at 3.3 percent is currently above the target 2–3 percent level set by the Reserve Bank of Australia, while the economic growth is consistent. This creates good ground for the positive expectations regarding country’s interest rates.
AUD/USD increased from 1.0854 to 1.0923 as of 9:33 GMT today; it has reached its absolute maximum of 1.0946 earlier. AUD/JPY is currently trading near its open level of 89.22. EUR/AUD declined from 1.3606 to 1.3594 today.
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