AUD/USD Reaches 2 Week High After Commodity Rally

The Australian dollar has hit a two-and-a-half-week high, getting a boost from higher commodity prices and a rally on stock markets.

At 0700 AEST on Wednesday, the local unit was trading at 71.44 US cents, up from 71.15 cents on Tuesday.

On Tuesday evening, it peaked at 71.67 US cents, its highest level since August 28.

RBC senior currency strategist Greg Moore said the Australian dollar was benefiting from a more optimistic market mood, with traders more willing to move into riskier assets.

“A rally in the US dollar started on US data releases that were overall solid,” he said.

“Commodity currencies managed to outperform, with the New Zealand dollar, the Canadian dollar and the Australian dollar the top performers, retracing yesterday’s losses.”

US retail sales rose 0.2 per cent in August, but slightly below market forecasts. US industrial production for August was also short of expectations.

Via The Age

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza