Aussie Finds Support in Forex Trading

Aussie is finding support in forex trading today as Forex traders scramble to make up for the fact that they had priced in a 0.25% cut to the interest rate. Instead of cutting, though, the Reserve Bank of Australia kept rates steady at 4.25%. The central bank considers the economic progress Down Under to be sufficient to allow for yields to remain higher.

Aussie’s support is mostly against the US dollar, though, and even then the currency pair is mostly rangebound. Aussie is also slightly higher against the euro and the UK pound. European currencies are managing to hold their own right to a certain extent on the hopes that Greece will agree to austerity measures needed to get the bailout deal done. While there are some snags, and Greek policymakers led by PM Lucas Papademos are scrambling to put together a package, many think that the euro will live another day. This uncertainty is the reason that European currencies aren’t doing better.
Australian dollar is finding support in better economic conditions and generally higher gold prices. As long as Australia can maintain some of its momentum, it is likely to gain going forward.
At 15:15 GMT AUD/USD is higher at 1.0796, up from the open at 1.0718. EUR/AUD has slipped to 1.2225 from the open at 1.2243. GBP/AUD is lower at 1.4645, down from the open at 1.4756.

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