DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - AUD reaching parity with USD soon? Again?

**yatrahnualenu** · 09-22-2010, 08:54 AM

$0.95 USD today. Not even rate rise yet. Market already factoring that eventuality.

http://www.smh.com.au/business/marke...ml?autostart=1

Records in sight as dollar soars again
Gabrielle Costa
September 22, 2010 - 6:57AM
Loading player

This video will automatically play after a 5 second delay.
More video
Recommended
Click to play video
No quick end to BHP's Potash bid
Click to play video
US Fed says recovery has slowed
Click to play video
Bank customers to hit back
Click to play video
Creating pearl perfection
Replay video
Reserve hints at rate rises
The commodity boom is likely to induce up to five rate rises over the year, the reserve bank has hinted.
Video feedbackVideo settings
The Australian dollar powered ahead again overnight, tearing through the 95-US-cent mark after a stellar performance that has driven the currency to its highest levels since the onset of the global financial crisis.

The latest rise saw the dollar touch a high of 95.64 US cents shortly before 5am east-coast time, its best since mid-2008.

The 95-US-cent level is considered key by traders. Technical or psychological barriers can restrain the strength of the dollar and it has now pushed through an important roadblock. The next one lies at 96.5 US cents. The dollar's peak since it began trading freely in 1983 is 98.5 US cents, achieved in July 2008.

From yearly lows of 81.58 US cents reached in May to this morning's highs, the dollar has risen a massive 17.2 per cent.

The latest rally is driven by a combination of factors, including weakness in the US dollar caused in large part by a belief the central bank there, the Federal Reserve, will embark on a program of stimulus measures that would effectively weaken the greenback.

Overnight, the Fed policy panel opened the door wider to pumping hundreds of billions of new dollars into the economy, although it kept official interest rates unchanged near zero. The greenback also weakened against the euro and the yen. It was at a six-week low against the euro and against the Japanese currency it fell to levels last seen a week ago when there were official moves to weaken the yen.

Another driver, strength in the Australian economy, has been underlined by expectations the Reserve Bank of Australia will lift interest rates sooner rather than later. Higher rates drive demand for the Aussie dollar as international investors seek out higher returns, in turn driving demand for the currency.

09-22-2010, 08:54 AM	#9
yatrahnualenu Join Date Oct 2005 Posts 477 Senior Member	$0.95 USD today. Not even rate rise yet. Market already factoring that eventuality. http://www.smh.com.au/business/marke...ml?autostart=1 Records in sight as dollar soars again Gabrielle Costa September 22, 2010 - 6:57AM Loading player This video will automatically play after a 5 second delay. More video Recommended Click to play video No quick end to BHP's Potash bid Click to play video US Fed says recovery has slowed Click to play video Bank customers to hit back Click to play video Creating pearl perfection Replay video Reserve hints at rate rises The commodity boom is likely to induce up to five rate rises over the year, the reserve bank has hinted. Video feedbackVideo settings The Australian dollar powered ahead again overnight, tearing through the 95-US-cent mark after a stellar performance that has driven the currency to its highest levels since the onset of the global financial crisis. The latest rise saw the dollar touch a high of 95.64 US cents shortly before 5am east-coast time, its best since mid-2008. The 95-US-cent level is considered key by traders. Technical or psychological barriers can restrain the strength of the dollar and it has now pushed through an important roadblock. The next one lies at 96.5 US cents. The dollar's peak since it began trading freely in 1983 is 98.5 US cents, achieved in July 2008. From yearly lows of 81.58 US cents reached in May to this morning's highs, the dollar has risen a massive 17.2 per cent. The latest rally is driven by a combination of factors, including weakness in the US dollar caused in large part by a belief the central bank there, the Federal Reserve, will embark on a program of stimulus measures that would effectively weaken the greenback. Overnight, the Fed policy panel opened the door wider to pumping hundreds of billions of new dollars into the economy, although it kept official interest rates unchanged near zero. The greenback also weakened against the euro and the yen. It was at a six-week low against the euro and against the Japanese currency it fell to levels last seen a week ago when there were official moves to weaken the yen. Another driver, strength in the Australian economy, has been underlined by expectations the Reserve Bank of Australia will lift interest rates sooner rather than later. Higher rates drive demand for the Aussie dollar as international investors seek out higher returns, in turn driving demand for the currency.
	Quote