The Euro received a boost today after weaker than expected data out of America pushed back expectations of an interest rate hike from the US Federal Reserve.
At 8.24pm (GMT) the Aussie dollar was trading at US$1.1288 up 0.18 percent in yesterday’s trade.
The latest durable goods order today out of America came in at 0.8 percent, up from -3.0 percent in the previous month but well below analyst’s expectations for a figure of 1.8 percent.
It was a blow to the US economy’s fragile recovery which is currently underway and caused a selloff of the US dollar across the board,
“At best you’re treading water here,” said Jacob Oubina, a senior U.S. economist at RBC Capital Markets LLC in New York,
“There is a general carving out of a bottom in the weakness that’s plagued the manufacturing space, but I don’t think we’re heading into a significantly more upbeat backdrop unless you start to see a firmer recovery in oil.” He added.
The disappointing numbers have also justified US Fed president Janet Yellen’s stance of taking a prudent approach to tightening monetary policy when she mentioned in her last speech that interest rate hikes would be data dependent.
Most analysts now believe there is less than a 5 percent chance that the Fed will raise rates in June.
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