Dollar dented by greenback rally, oil fall
Heightened expectations of a US rate hike are keeping the local dollar near the bottom end of its recent trading range.
Rising expectations of a US rate hike, plus falling oil prices, are keeping the Australian dollar near the bottom end of its recent trading range. At noon (AEDT) on Wednesday, the local unit was trading at US75.58c, nearly unchanged from US75.57c on Tuesday.
OANDA Australia and Asia Pacific senior market analyst Jeffrey Halley said the Aussie was being dented by rising expectations of a US rate hike before the end of 2016.
“The Australian dollar is flirting with the bottom end of its recent trading range at 75.50 US cents this morning, weighed down by a stronger US dollar across most of the G10 universe,” he said.
“Speculation of higher US rates seem to be the driver as the market is pricing in an increasing likelihood of a US rate hike in December.” A fall in oil prices after the head of Russia’s largest oil producer, Rosneft, said it wouldn’t participate in OPEC’s planned production cut, was also a negative for the Australian dollar, Mr Halley said.
AAP
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