Wednesday saw the Australian dollar remain high against the world's reserve currency as the Aussie preserved its strength from two consecutive trading sessions of gains, Bloomberg reports.
The Aussie is poised to continue its upward drive as policy makers with the U.S. Federal Reserve convene for the second day of meeting on Wednesday. The Federal Open Market Committee is slated to be followed by a policy meeting convened by the European Central Bank within the next two days.
"The FOMC is likely to acknowledge the weakness in the labor market data since the last meeting and the continued decline in underlying inflation," states a Wednesday note penned by analysts Ajay Rajadhyaksha and Dean Maki with Barclays Capital, according to The Sydney Morning Herald. "Recent FOMC meetings have focused on when to taper asset purchases, but given the recent data, attention may now shift to the potential for further accommodation."
The strength of the Aussie is reflective of the strength of the nation's economy, Australia Treasurer Wayne Swan told a business luncheon in Melbourne on Wednesday.
Linked with commodities, the Australian dollar benefits from efforts to spur economies, such as quantitative easing and interest rate slashes.
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