Aussie Slides Lower In APAC Trade

The Australian dollar has briefly dropped below 74 US cents after Federal Reserve Chair Janet Yellen flagged a rate rise is on the horizon.

At 1200 AEDT on Friday, the local unit was trading at 74.03 US cents, down from 74.79 cents on Thursday. It hit a low of 73.9 US cents at 1135 AEDT.

Ms Yellen said the Fed could raise its interest rate “relatively soon” due to further improvement in the US job market and a pick-up in inflation.

That has boosted market expectations of a rate hike in December.

Stephen Innes, senior currency trader at FX and CFD provider OANDA Australia and Asia Pacific, said the Aussie has been under pressure all week because of the steeper US yield curve and softer outlook for commodity prices.

“Yesterday’s underwhelming domestic employment data was the driver for traders to stick the fork in the pair,” Mr Innes said.

Sydney Morning Herald

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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