Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Forex - AUD/USD hits all-time high after Fed’s Bernanke

Published 04/28/2011, 03:08 AM
Updated 04/28/2011, 03:08 AM
Investing.com – The Australian dollar climbed to a record high against its U.S. counterpart on Thursday, after Federal Reserve Chairman Ben Bernanke signaled that the central bank will maintain record monetary stimulus to bolster U.S. growth.

AUD/USD hit 1.0947 during late Asian trade, the pair’s highest since it was floated in December 1983; the pair subsequently consolidated at 1.0916, gaining 0.40%.

The pair was likely to find support at 1.0773, Wednesday’s low and short-term resistance at 1.1000.

In his first ever post-policy meeting press conference on Wednesday, Bernanke said that the U.S. labor market was improving, but it still was not in good shape and that the Fed will do what is necessary to ensure low inflation.

The central bank, which left interest rates unchanged, said it "will complete" its USD600 billion bond-buying program by the end of June and hold short-term rates at a record low for an "extended period." Bernanke said there was no timetable for tightening.

In contrast, government data earlier Wednesday showed that Australian consumer prices jumped the most since 2006 in the first quarter, adding to expectations for rate hikes by the country’s central bank this year.

Meanwhile, the Aussie was down against the yen, with AUD/JPY shedding 0.29% to hit 89.00.

Later Thursday, the U.S. was to publish advance data on first quarter gross domestic product, as well as official data on initial jobless claims.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.