The Australian dollar continued its strength today following on from yesterday’s jump after disastrous figures from the US.
At 8.31pm (GMT) the Aussie dollar was trading at US73.71c up from US73.66c in yesterday’s trade.
The run of the Australian dollar is attributed to last Friday’s terrible non-farm payrolls figure which sent the US dollar tumbling against most major currencies as the chances for a rate hike from the US Federal reserve all but evaporated this month.
"There is no doubt at this juncture that a June hike is completely at odds with even a modest modicum of Fed risk management," noted Tom Porcelli, chief US economist for RBC Capital Markets.
"For a committee that has shown in the very recent past to be deathly afraid of headline, a modest private job gain is, at minimum, going to lead to some serious self-reflection within the Fed." He added.
There news out of the US is likely to add some spice to tomorrow’s monetary policy meeting from the reserve bank of Australia.
After the recent run of solid economic data out of the US the market had been anticipating the US Fed to raise rates this month but now that this is off the table. The RBA may be under pressure to cut interest rates again to stop the Aussie dollar’s strength.