Australian Dollar gains post FOMC minutes

By Swati Pandey

SYDNEY, Oct 12 (Reuters) – The Australian and New Zealand dollars rose on Thursday as the greenback stumbled to two-week lows after minutes of the U.S. Federal Reserve meeting showed many officials expressed concerns that soft inflation might not be transitory.

The worries about stubbornly weak consumer prices put a question mark over the pace of future rate increases in the world’s biggest economy.

That led to some selling pressure in the dollar and sent its Australian counterpart to a one-week top of $0.7813. The Aussie has risen 0.5 percent so far this week, after four straight weekly losses.

The New Zealand dollar climbed for a third straight session to a high of $0.7110 but was still within spitting distance of a more than four-month trough touched this week.

“Inglorious uncertainty has set in over the course of the Federal Reserve Board path to interest rate normalisation,” said Stephen Innes, head of trading for Asia-Pacific at OANDA.

“Given the uncertainties of Fed pricing and an arguably dovish FOMC minutes, it should underpin sentiment in the Australian Dollar”

 

The Business Times via Reuters

 

 

 

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and 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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