The Australian dollar is holding steady in late trading today but may come under pressure later in the week as a strong round of data from the US increased the chances of a rate hike from the US Federal Reserve.
At 6.58pm (GMT) the Aussie dollar was trading at US76.28c up from US76.18c in yesterday’s trading.
The ISM's purchasing managers index (PMI) which represents the services sector and is a key driver of the American economy, rocketed to to 57.1 in September and well up on the previous months figure of 51.4. The figures mark the highest release in nearly a year.
It also comes on the back of Monday’s impressive manufacturing numbers which has added more pressure on the Fed to tighten monetary policy.
These data help the case for the Fed tightening again before too long," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York.
The focus is now on Friday’s trading day with the release of the Non-Farm Payrolls figure from the US with a strong figure all but guaranteeing the FED will lift interest rates and in turn send the Australian dollar lower.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 58% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
IMPORTANT: Please be informed, that our services are available for Professional Clients only. Our website is currently under review for the implementation of the correspondent amendments.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|