The Australian dollar soared Wednesday following Chinese markets steadies yesterday and investors scaled back bets the Federal Reserve will increase interest rates as early as next week.
The Aussie ended at 70.35 US cents after it reached a six-year trough of 68.96 US cents Monday. The currency was bolstered by disappointing commodity prices and signs of a slowdown in China.
The second day of upbeat price action amid reasons for it to be weaker implies markets are taking a “breather from their myopic China focus,” said Sam Tuck, Senior Currency Strategist at ANZ Bank New Zealand.
Meanwhile, Reserve Bank of Australia Deputy Governor Philip Lowe is due to speak in Melbourne, while Assistant Governor Guy Debelle is slated to give a briefing in London.
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