Australian dollar is gaining almost across the board today as risk appetite returns the Forex market. Some are interested in the idea that the news Federal Reserve won’t raise interest rates until 2014, and others assume that the Fed will increase bond purchases in the hopes that it can further stimulate the US economy, especially the labor market. Also helping the Aussie: News that Russia will start using it as a reserve currency.
Indeed, one of the biggest drivers of the Australian dollar today is the news that Russia wants to start using the Aussie as a reserve currency. Alexei Ulyukayev, the first deputy chairman of the central Bank of Russia, announced that the Australian dollar will be used as reserve currency — and that Russia could begin stockpiling Aussies as early as February.
Also supporting the Aussie is the fact that gold prices are higher. Higher gold prices offer support for the Australian dollar, as it is a commodity currency that is tied to the precious metal. With gold prices heading solidly above $1,700 an ounce, it is little surprise that the Australian dollar is following suit.
At 14:31 GMT AUD/USD is higher at 1.0666, up from the open at 1.0593. EUR/AUD is lower at 1.2340, down from the open at 1.2359. GBP/AUD is down to 1.4708 fro the open at 1.4769.
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