The Australian dollar pushed to its four-week height against the world's reserve currency on Tuesday after the Reserve Bank of Australia indicated the impact of efforts to intervene have been for the better, according to Bloomberg.
The Aussie rose after the minutes of the RBA's most recent policy meeting were released and noted policy makers commented on stability with interest rates. There was no discussion about the Australian dollar being too high in value.
"The outlook clearly improved since November, with the RBA minutes noting several of the better data outcomes," currency strategist Greg Gibbs with RBS in Singapore told The Wall Street Journal on Tuesday. "While it may not be new news, it does reinforce the firmer message of recent reports and supports the recent Australian dollar recovery."
The Australian dollar climbed to its highest value since January 13 during trading on Tuesday against the greenback after U.S. markets were closed on Monday in observation of President's Day.
After having endured rough economic times during the past year, the economy of Australia is slowly recovering, The Wall Street Journal reports, noting one key effort includes keeping interest rates low.
Risk Disclosure
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.
