The Australian dollar was slowly sagging all day until the release of the US Fed chairman’s prepared remarks to Congress at 10.30pm Sydney time.
In a blink the Aussie gained about half a cent against the greenback as Ben Bernanke restated there was no set timeline for an end to the Fed’s round of asset buying. It was not “on a preset course”, he said.
This means that, despite the slowdown in China and the drop in commodity prices which have been so central to driving the Australian economy in recent years, the Fed still harbours sufficient concerns about the strength of the US recovery that the USD could stay softer for longer. So the AUD regained some ground.
Bernanke may have more to add in his responses to questions so there may be more moves in the hours ahead.
But here’s the chart, via investing.com, showing the spike on the release of the comments. Pow.
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