Aussie Regains Some Lost Ground After Earlier Plunge

Aussie is regaining some of the ground lost earlier after the announcement that the US Federal Reserve plans to raise rates before the end of the year. Commodity currencies were under pressure toward the end of the day yesterday, and the Australian dollar felt some of that.

Aussie dropped to a six-year low overnight against the greenback, thanks to the latest information that the Fed really is getting ready to boost interest rates. Not only did news of a US rate hike by the end of the year put downward pressure on the Australian dollar, but all commodity currencies felt the impact of a rate cut in Canada.
Today, though, the Australian dollar seems to be regaining some of its lost ground. The Aussie is heading higher against many of its major counterparts, even as concerns about China’s economy remain in the background and gold prices continue to struggle.
This rebound may not last too long, however. There are plenty of reasons for Forex traders to look for the safety and stability of the US dollar right now.
At 13:19 GMT AUD/USD is higher, gaining to 0.7408 from the open at 0.7379. AUD/NZD is up to 1.1337 from the open at 1.1195. AUD/JPY is also higher, moving up to 91.9150 from the open at 91.3450.

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