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RBA may halt Aussie dollar
Published on 11.03.2016 20:59

The Australian dollar finished the week of strongly on Friday, breaking through the US 75c mark with some now predicting the rally has gone too far and the RBA may step to halt the rise.

At close of trade on Friday the Aussie dollar was fetching US75.61c up from US74.52c in the previous day.

The Reserve Bank of Australia had begun to feel comfortable with the Australian dollar sitting at around US70c, and refrained from talking down the currency at their most recent board meetings.

With the Aussie having risen the most in 4 years, we may see all that change with the release of the Minutes meeting from the RBA next week.

Members of the Australian central bank may decide once again to talk down the currency as a way to put a lid on any further gains, and bring it back down into their comfort zone.

Other news likely to affect the Australian dollar next week is the release of the latest interest rate decision from the US Federal Reserve followed by a monetary press conference.

According to market predictions, analysts are only expecting a 5 percent chance that the FED will hike interest rates again for the second time this year, which means it is not completely of the table as the US central Bank has a tendency to surprise.

Even if rates are kept on hold a bullish outlook in the following statement indicating further rate hikes in the foreseeable future is like to put the Australian dollar under pressure.

Andrew Masters


The power of leverage is the power of Forex.
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