The Aussie Dollar took the lead among the major currencies after the Reserve Bank of Australia left interest rates unchanged. The message which followed the announcement suggested that the RBA did not perceive any major growth threats, even from China, which gave investors hope that there won’t be any additional rate cuts in 2015. Some analysts have pointed out that the problems in China had essentially already been priced into the Aussie Dollar, which is trading close to a 6-year trough against the US Dollar.
As reported at 11:55 am (BDT) in London, the AUD/USD was trading at $0.7120, a gain of 0.54%; the pair ranged from $0.7068 to $0.7134 in today’s trade. The EUR/AUD was lower at AU$1.5745 as investors await news from the European Central Bank regarding its protocols.
Dollar Weighed by Pessimism
The Dollar remained under pressure once again, as jitters continue to rise in the global financial markets. Last week’s surprise labor report from he US impacted global sentiment to a greater degree than usual. Many traders are questioning the health of the US economy and whether the Federal Reserve will be compelled now to stand down from hawkish rhetoric. The US Dollar Index, the market’s measure of the greenback’s relative weight, was down at 95.905 .DXY, a loss of 0.21%.