The Australian dollar is sharply higher today after a round of disappointing economic news from the US yesterday saw Investors ditching the greenback. In today’s trading, the local currency is sitting around US88.65 cents up from a low of US87.94 cents yesterday. US durable goods orders for September came in at -1.3% against analysts’ expectations of 0.5% bringing to a halt the recent positive economic news out of America.
The number spooked investors as it was completely unexpected and they couldn’t get out of the US currency quick enough. It is a very Important Indicator and it may be a sign that the US economy is not recovering as well as many thought. The US dollar may come under further pressure depending on the tone of language used by the Fed when they present their latest monetary policy statement later today. If they appear reluctant to talk up the economy, we may see Investors ditching the greenback further. Rates are expected to remain on hold at 0.25% where they have been sitting since 2008.
The number spooked investors as it was completely unexpected and they couldn’t get out of the US currency quick enough. It is a very Important Indicator and it may be a sign that the US economy is not recovering as well as many thought. The US dollar may come under further pressure depending on the tone of language used by the Fed when they present their latest monetary policy statement later today. If they appear reluctant to talk up the economy, we may see Investors ditching the greenback further. Rates are expected to remain on hold at 0.25% where they have been sitting since 2008.
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