The Australian dollar is trading higher today on the back of stronger oil and iron ore prices.
At 8.33am(GMT) the Aussie dollar was trading at US72.32c up from US 72.26c in yesterday’s trade.
Iron ore, Australia’s biggest export broke through the US$50 a tonne mark overnight, marking it’s highest level since October last year while giving a much needed boost to the Australian dollar.
The rally in the Iron ore price seems to be connected to Chinese building firms restocking their supplies after the Lunar New Year and many expect the price to pullback in the next month as construction gets underway.
The oil price also rose by more than 5% on the back of a report from the International Energy Agency that predicted predicted US shale oil production would fall by 600,000 barrels per day in 2016.
This is on top of the continued negotiations between Saudi Arabia and Russia about reducing oil supplies to the market in a bid to put a floor under the price.
With the RBA seemingly content with leaving Interest rates on hold for the nearest future as well as a growing belief that the US Federal Reserve may delay lifting rates further, the Aussie dollar may receive some more support as we move forward.
Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Click "Cancel" to remain on this page.|