Australian dollar ripped higher overnight

Photo by Stu Forster/Getty Images

Having fallen to as low as .7071 following the release of minutes from the US Federal Reserve’s October FOMC meeting, the Australian dollar ripped higher in the latter parts of overnight, hitting a high of .7118 on the back of a later rally in US stocks.

Despite the minutes strengthening the case for the Fed to raise rates for the first time since June 2006 in mid-December, the US dollar weakened following its release, indicating that a rate hike in December is now all but expected by the markets.

“In short, it is going to taker either a disastrous November payrolls report or major sell-off in US/global risk assets to stop the Fed going next month,” wrote Ray Attrill, global co-head of FX strategy at the NAB, in his morning note.

As at 8.30am AEDT, the AUD/USD currently buys .7110, nearly unchanged from Wednesday’s opening level.

AUD/USD 5-minute chart Source:

Looking ahead to Thursday’s Asian trading session, there are no major domestic data releases to speak of.

On the regional front markets will receive Japanese trade data for October. The Bank of Japan will also announce its latest monetary policy decision later this afternoon although no change in stance is expected.

Here’s the current Aussie dollar scoreboard.

  • AUD/USD 0.7110 , 0.0001 , 0.01%
  • AUD/JPY 87.82 , 0.07 , 0.08%
  • AUD/CNY 4.5386 , 0.0051 , 0.11%
  • AUD/EUR 0.6671 , -0.0005 , -0.07%
  • AUD/GBP 0.4667 , -0.0005 , -0.11%
  • AUD/NZD 1.0993 , 0.0017 , 0.15%

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