The Australian dollar jumped today as Westpac Banking Corp. said that it no longer expects an interest rate cut from the Reserve Bank of Australia. Such comments boosted the currency even though there are analysts who still expect lower borrowing costs in the South Pacific country.
Bill Evans, Westpac chief economist, said:
Previously we expected that rates would be reduced by 25 basis points in both August and November. The forecast is now for flat rates throughout 2014. As before we do not forecast a rate hike until the third quarter of 2015.
The Aussie also strengthened as the Forex market largely ignored the referendum in Crimea that is likely to result in secession of the region from Ukraine and joining Russia.
AUD/USD climbed from 0.9001 to 0.9093 and AUD/JPY soared from 91.15 to 92.40 as of 15:21 GMT today.
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