The Australian dollar is trading higher today bouncing off a fresh four and a half year low from yesterday’s trade, as the US looks set to move on Interest rates early next year.
At 7.15pm (AEDT) the Australian dollar is trading at US81.66 cents after falling as low as US81.07 cents in yesterday is trading.
Citing comments from Fed president Janet Yellen, analysts now predict that the US central bank will lift rates in April 2015 from their record lows.
Yellen also mentioned that she is prepared to let the unemployment rate fall from its current rate 5.8% to as low as 5% which should help push the Inflation rate in the US to the bank’s target rate of 2%.
The Australian dollar will find strong resistance at US82.00 cents as trader’s book in profits for the weekend claim analysts from Fibogroup.
We expect the currency to find strong support around the US80.50 cents level as we head into Christmas.
The Australian dollar is expected to keep falling next year towards the RBA’s preferred level of US75.00 cents as unemployment rises and the potential for an interest rate cut in Australia weighs on the currency.
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