Cautious remarks from the US Federal Reserve have helped the Australian dollar break above US76c.
At 7am (AEDT) on Wednesday, the local unit was trading at US76.41c, up from US75.41c on Tuesday.
The
Aussie spiked one US cent overnight after Fed Chair Janet Yellen
doubled down on her dovish comments, ANZ senior FX manager Sam Tuck
said.
Dr
Yellen said the US central bank still envisions a gradual pace of
interest rate increases in light of global pressures that could weigh on
the US economy.
“She
stated not only was caution in normalisation exceptionally warranted at
the moment, but also that the Fed has room to add stimulus,” he said.
Westpac economists said the remarks pared back expectations of upcoming tightening, which dragged the greenback lower.
“Such
a cautious stance suggests a rate hike in April is unlikely, and there
may now even be question marks regarding June,” they said.
Source: businessspectator
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