Aussie near two-week high

The Australian dollar is near a two-week high versus the US dollar, as traders feel another rate cut is less likely than was anticipated in the summer.

The Australian dollar is trading at $0.9425, up 0.3% on the day. During the week the Reserve Bank of Australia (RBA) kept interest rates at an all-time low of 2.5%, as Glenn Stevens of the RBA stated that he is waiting for previous rate cuts to take effect. The Australian dollar has been less volatile as China has been on holiday for most of the week, due to the fact that China and Australia conduct a large amount of business.

US unemployment data will not be announced today as expected as the partial shutdown in the US has impacted the labour department staff. At 2.30pm (London time) Jeremy Stein of the Federal Reserve will make an announcement. If he suggests that the stimulus package should be kept in place for the foreseeable future, we could see the Australian dollar rally.

Spot FX AUD/USD chart

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