Tuesday, 3 Nov 2009

Dollar Holds Steady while Aussie Takes a Dive

The US Dollar remained flat today in early morning trading as investors avoided any risk taking ahead of several major policy announcements later in the week. With the U.S. Federal Reserve, Bank of England (BOE) and European Central Bank (ECB) all due to come out with new monetary policy decisions in the next two days, investors can look forward to more market volatility in upcoming trading. Until then, bet on the greenback holding steady in the near future.

After the Reserve Bank of Australia (RBA) raised interest rates from 3.25% to 3.50%, the AUD erased any gains made last week and tumbled against the Dollar. With rumors circulating that interest rates could be hiked again as soon as December, all indicators say that the Aussie will not be moving up anytime soon.