Australia’s Central Bank Unexpectedly Raises Interest Rates
October 6th, 2009 Posted in Aussie - Kiwi
After the success of our recent GBP campaign and due to the demand from our Forex customers, we have decided to expand this idea to offer a comprehensive analysis of the South Pacific Currencies: the AUD and NZD. The AUD and NZD are very popular choices among investors for riskier currencies and have been two of the strongest performers against the USD in the past several months.
Our Aussie-Kiwi campaign starts with exciting news. Australia’s central bank unexpectedly raised its benchmark interest rate by 0.25% from a 49-year low of 3.00% to 3.25%. The AUD has gained around 150 pips throughout the day following the RBA rate statement and is currently trading around the 89.00 cents price level. Australia is the first G20 nation to increase its interest rates since the start of the crisis.
The move signals that the Reserve Bank of Australia (RBA) believes that Australia is steadily emerging from the recession and it is time to begin exiting the stimulus program provided by their monetary policy. This is good news for the Aussie and is likely to provide support for the currency as the expectation is that this rate hike is the start of a series of similar moves. Combined with the continuous negative Dollar sentiment, the AUD might cross the 90.00 cents price level in the next few days.
Start trading with Natalie R. now:
Tags: AUD trading, AUD/USD trading, australia interest rates
