The greenback reacted positively to the rate-hike rhetoric, pushing the Aussie dollar down to a three-month low of 72.22 US cents.
The Aussie dollar has retraced some ground after falling to a three-month low following the release of Federal Reserve minutes that signalled a June US rate hike is ‘live.’
At 0700 AEST on Thursday, the local unit was trading at 72.30 US cents, down from 72.63 cents on Wednesday.
Overnight, the Federal Open Market Committee said it would consider raising rates pending better March quarter economic data.
‘The FOMC minutes signalled that second quarter developments in labour data, growth, and inflation were the key to hiking in June,’ Westpac strategist Imre Speizer said.
The greenback reacted positively to the rhetoric, pushing the Aussie dollar down to a three-month low of 72.22 US cents.
Mr Speizer said Thursday’s local highlight will be the employment report, where a 12,000-jobs gain is expected.
‘The surprisingly hawkish FOMC saw the multi-week decline resume, targeting 72 US cents,’ he said.
‘However, any Australian jobs report surprise will dominate today.’
At 7am on Thursday, 19 May one Aussie dollar was buying:
72.30 US cents, from 72.63 cents on Wednesday*
79.66 Japanese yen, from 79.53 yen
64.45 euro cents, from 64.42 euro cents
107.25 New Zealand cents, from 107.36 NZ cents
49.52 British pence, from 50.35 pence
*Currency closes taken at 1700 AEST previous local session
AAP
