February 2007
Australian Dollar Range Trading
Looks like the Australian dollar is stuck in range trading mode for the moment. The support for the Aussie dollar is largely believed to be from the possible further rate rises. The RBA Governor Glenn Stevens warned last week that it was “too soon to declare victory” over inflation, adding that cutting of interest rates hasn’t been recently considered. Remember that the Australian official interest rates were raised three times in 2006.
Government Announcements Influencing Markets
It’s been an interesting day - there has been a few announcements coming from government institutions that are influencing the forex markets. There were two notable announcements/news that was directly influencing the Australian dollar. The first was on Wednesday (21/2) night with Glen Stevens, the Reserve Bank of Australia’s (RBA) Governor said in a statement that interest rates were more likely to rise than fall. He also noted that inflation won’t stay above 3 percent or higher.
Australian Forex Over the Past Month
I haven’t been in Australia for the past month, and it’s time to review the forex charts to check out what’s been happening to my beloved AUD/USD currency pair over the past month. Yes, the holiday was GREAT. And Yes, I did keep up to speed of what the Australian dollar has been doing over the past month. How? By checking out local papers and Bloomberg!