Not many traders thought the Aussie dollar would climb back above 78 cents yesterday in the wake of the Fed decision.
Fewer still likely thought that the Aussie would give it all back overnight as the US dollar surged once again.
But that’s where we are this morning with the Aussie back at 0.7620. That’s below where it was when the Fed made its announcement yesterday morning.
What’s driving this move is nothing to do with Australia or any specific Aussie dollar characteristics.
Instead, the US dollar bulls haven’t given up and the Euro is down 2% at 1.0643, Sterling is back at 1.4708 and the Canadian dollar is up 1.35% at 1.2734.
It could be a very interesting, and important, close to the week tonight in New York for dollar bulls.