The Aussie Dollar Adds Half a cent on the back of an Interest Announcement

Submitted by Craig Strzelecki on 1 February, 2006 - 14:02

The Aussie dollar has added more than half a US cent since Tuesday amid speculation that the US Fed may not be quite done lifting rates. The dollar gained momentum throughout the night supported by commodities and gold. At 7am the Aussie was at US 75.14¢, Tuesday's close was at US75.12¢. The US Fed reserve raised interest rates to 4.5 per cent the highest since April 2001. The statement issued by the Fed was scrutinised by investers to interpret any futher information indicating any future interest rate direction. Most investors intereted the statement as indicating that the Fed had not finished raising rates just yet. The Aussie was also supported by end of month fixed buying.