Prompting the Aussie higher was confidence that the central bank of the U.S. is poised to cut interest rates when it convenes next month. Analysts and investors were assessing the prospects of slowing down economy-spurring stimulus programs, which the U.S. Federal Reserve has said it would prefer to implement in the coming months. Three regional presidents with the Federal Reserve Bank are set to fulfill speaking engagements.
"Consumption, confidence, it's all heading south," dealer Michael Judge with online foreign exchange company OZForex Pty Ltd. in Sydney told Bloomberg on Friday. "If we see a cut, we're going to see a correction in the Aussie. But I think 90 U.S. cents will hold."
Losses for the Aussie thus far this year against the U.S. dollar have pushed to roughly 12 percent. This week's gains are approximately 1.2 percent.
China, a top trade and commerce partner with Australia, reported weaker gross domestic data, which also impacted the performance of the Aussie on Friday, according to Reuters.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.