RSS Feed
Twitter
Dollars high rate attracted investors trust
Australia, October 1, 2010 – As the dollar value continues to rise, investors have started coming in, showing confidence to the fairly high local interest which is foreseen to increase more in the coming month.
Recorded at 7am (AEST) today, the dollar’s worth was at 96.09 US cents which was relatively high compared to yesterday’s 95.88. Yesterday starting at 5pm (AEST), the currency exchange was between 95.80 US cents and 96.40 cents. The dollar touched its highest overnight of 96.40 cents before it went back to 96.09 in the early morning trade.
Darren Richardson, a Canadian Forex dealer stated that increased yields were pulling in investors into the domestic currency at an unstable night of trading.
Next week shows a more promising cash rate for Australia as an estimate of 4.75 per cent is predicted to come due to the even chance of a 25 basic point rise, a relatively high increase from the country’s standard 4.5 percent.
Australia’s cash rate which match up to the zero to US’s 0.25 percent, Euro area’s 1percent, and Japan’s 0.1 percent.
The RBA board is scheduled to meet again on Tuesday for its next monthly monetary policy meeting.
Traders were lead to a different direction when US failed to produce new economic data which caused the US dollar’s loss in New York after its big drop last week. As Mr. Richardson stated, there were no major data provided at the time of the offshore session. He added that instability was felt at one time but in the end, the markets were pretty stable on the equities and commodity sides. Across the board, as further commented by Mr. Richardson, the market is said to be still in the risk-on mode.
The dollar was foreseen to still play well with the continued lack of local economic data. He stated that there is no reason for the currency to dip below 95.75 US cents while it may be closed at 96.40 cents.
