The US Dollar (USD has taken a battering in overnight trading against the Australian Dollar (AUD) with the cross reaching 0.7050 early today. It’s been carnage in the markets post Wednesday’s Fed decision when they hiked interest rates from 1.0% to 1.75% in what was seen as the biggest increase since 1994. Most punters were predicting 75 points with some at 100, most of the move already baked into the charts, however. The greenback has been spanked over the past couple of days, the “dollar index” dropping over 3.0%. Usually such a spike in rates would have sent prices lower but since Powell said the July Fed hike could be either 50 or 75 points this rocked markets based on earlier comments suggesting a solid 75 points was already locked in. Aussie job numbers were consistent with an additional 60,000 people being added to the workforce and unemployment remaining at 3.9%, this helped the Aussie push up Thursday. We suspect the cross above 0.7100 could be getting fairly toppish, if you are considering buying.
The current interbank midrate is: AUDUSD 0.7022
The interbank range this week has been: AUDUSD 0.6849- 0.7068