The Australian dollar is sharply lower today giving up all of its gains after breaking through the US76c mark after a dovish tone in yesterday’s US Federal reserve minutes meeting.
At 9.29pm (GMT) the Aussie dollar was trading at US75.05c down 1.23 percent from yesterday’s trade.
After a majority of Fed board members noted in the minutes meeting yesterday that they would like to hold off raising interest rates until later in the year, the Australian dollar bounced along with other major
Another round of poor data hit the market today from Australia with the AIG performance construction index coming in at 45.2, down on last month’s figure of 62.1.
The figure has basically been falling for most of the past 12 months which is a big sign that the real estate bubble in Australia may be about to burst..
This is good news for the Reserve Bank of Australia who have been reluctant to cut interest rates further recently in part because of the overheated property market.
With that problem seemingly out of the way it gives the RBA more room to maneuver and there may be a rate cut coming soon if inflation fails to pick up.
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