The US stock market has now reached the highest level on record as the Dow Jones rose above 16,000 and Standard & Poors posted figures above 1,800. With investors having been settled following Janet Yellen’s comments made towards the end of last week citing the fact that QE in the US is likely to be maintained for some time to come. This has encouraged investors to trade in riskier assets which has sent both US shares to record highs and helped the Australian Dollar to strengthen across the board.
Global investors tend to avoid the Aussie Dollar in times of uncertainty but with last week’s comments the Aussie has fought back against the Pound having got close to trading at levels of 1.73. Also, the low interest rates in the US has driven investors to seek investments where they can find higher returns.
With the Aussie base rate currently at 2.5% the Aussie is often seen as a good purchase for short term gain.
Tonight the Reserve Bank of Australia published its minutes from the previous meeting and any talks of a rate cut could signal a quick weakening of the AUD against the Pound so if you’re thinking of selling Australian Dollars if the news is negative we could see good short term opportunities during tomorrow’s trading session.
If you are thinking of buying or selling Australian Dollars get in touch for a free quote Tom Holian [email protected]