(7 October 2015 – Australia) Following the Reserve Bank of Australia’s (RBA) decision to leave the overnight cash rate (OCR) untouched, the Australian dollar enjoyed a jumped to US$ 0.72, its highest level since September 21.
The gain have come despite the International Monetary Fund (IMF) down grading its expectations for global growth for the remainder of this year and 2016.
In a statement this morning, Ray Attrill, co-head of FX strategy at the NAB said: “Markets have long since given up seeing much information value in the now customary 6-monthly downward revisions to its global and country-specific growth forecasts.”
Fairfax reported Commonwealth Bank’s currency analyst, Elias Haddad say: “The US dollar should trade in a choppy range this week because US interest rate expectations are unlikely to adjust higher for now,”
“The Australian dollar should be supported versus the USD this week because the disappointing September US job report and ISM non‑manufacturing index has pushed out the timing of the first Fed rate hike, benefiting risk assets.”