The Australian dollar tumbled Tuesday following the US dollar gained new strength from four Federal Reserve officials who indicated an interest rate hike is imminent.
Federal Reserve Bank of Atlanta President Dennis Lockhart said he placed the Fed’s decision last week to keep rates close to zero on prudent risk management encompassing market volatility.
Other Fed officials echoed his remarks over the last days since the US central bank retained rates last week.
The Aussie closed at 63.77 euro cents, 71.97 US cents, and 45.99 British pence.
The currency’s failure to rise in overnight trade, amid optimism on American, Chinese, and European stock markets “indicates the rallies in AUD don’t have much strength and further downside in AUD is likely,” said Richard Grace, Chief Currency Strategist at Commonwealth Bank of Australia.
Investors will turn their attention to China’s Caixin manufacturing purchasing manager’s index for September.
The material has been provided by InstaForex Company – www.instaforex.com