9 Oct 2013
AUD benefits from Yellen bounce ahead of tomorrow's job numbers
FXstreet.com (London) - AUD has rallied strongly in advance of President Obama’s nomination of Janet Yellen as the successor to US Federal Reserve Chairman Ben Bernanke.
The ultra-dovish Yellen is seen as likely to be slow in tapering the Fed’s USD85bn monthly asset purchase programme, continuing to provide cheap liquidity to the markets. Despite being a foregone conclusion since Larry Summers’ resignation from the race in September, the confirmation of Yellen’s nomination has helped to rally AUD/USD 0.32 percent to USD0.9454.
The Aussie dollar has been helped in anticipation of continuing commodity price support from the Fed.
A further temporary AUD boost could be in store tomorrow, when it is anticipated that payroll numbers will show a September increase, aided by temporary workers hired during the general election. However Australia is still struggling with unemployment at a four-year high of 5.8 percent – something that could lead to the already dovish Reserve Bank of Australia to further slash its historic low 2.5 percent benchmark rate.
The ultra-dovish Yellen is seen as likely to be slow in tapering the Fed’s USD85bn monthly asset purchase programme, continuing to provide cheap liquidity to the markets. Despite being a foregone conclusion since Larry Summers’ resignation from the race in September, the confirmation of Yellen’s nomination has helped to rally AUD/USD 0.32 percent to USD0.9454.
The Aussie dollar has been helped in anticipation of continuing commodity price support from the Fed.
A further temporary AUD boost could be in store tomorrow, when it is anticipated that payroll numbers will show a September increase, aided by temporary workers hired during the general election. However Australia is still struggling with unemployment at a four-year high of 5.8 percent – something that could lead to the already dovish Reserve Bank of Australia to further slash its historic low 2.5 percent benchmark rate.