Published: 22 Sep at 11 AM Tags: Dollar Exchange Rate, Australian Dollar Exchange Rate, Currency Exchange, Forex, Euro Crisis, Yen Exchange Rate, Exchange Rates,
The Australian Dollar US Dollar exchange rate has advanced by almost a cent since the beginning of the week as traders continue to buy into the commodity based ‘Aussie’ as they bet against an increase in interest rates by the Federal Reserve.
Australian Dollar Strong against US Dollar (AUD USD) and Japanese Yen (JPY) After Bank of Japan Meeting
Wednesday’s news that the Bank of Japan (BoJ) has decided to leave its interest rate unchanged amidst an overhaul to its monetary policy has given the ‘Aussie’ a boost against both the US Dollar (AUD USD) and Yen with the Australian Dollar gaining almost a cent on the Yen late on Wednesday.
Australian Dollar (AUD) Advances on US Dollar after Drop Last Week
The Australian Dollar continues to trend upward against the US Dollar as traders focus on Thursday’s Fed policy announcement. Meanwhile the ‘Aussie’ continues to apply pressure on the ‘Greenback’ as it enjoys a current boom in commodity trading.
Meanwhile the markets expect a bullish attitude from new Reserve Bank of Australia (RBA) Governor Philip Lowe. Despite only taking over from predecessor Glenn Stevens last week, Lowe has indicated that he may put an end to the current cycle of rate cuts.
Australian Dollar US Dollar Exchange Rate Forecast Reliant on Fed Decision
The ‘Aussie’s current strength will ultimately rely upon on how Thursday’s Federal Reserve meeting goes, as a surprise rate hike would cause a fall in the AUD/USD exchange rate as traders move away from the higher risk Australian Dollar. Conversely, a continued neutral approach by the Fed could see the US Dollar fall further against the ‘Aussie’.
Any indication of an increase in US Interest rates later on in the year would likely weaken the AUD/USD exchange rate in the short turn, but should commodity trading remain strong we could well see a return to strength in the interim.
Current Exchange Rates
At the time of writing the AUD/USD exchange rate was trending around 0.7570 and the USD/AUD exchange rate was trending around 1.3200