The Australian Dollar is skyrocketing versus its US counterpart on Friday. AUD/USD has gained 2.5% across the week, jumping 1.1% on Friday alone. The pair is trading just shy of its high of US$0.7350 a level last seen in December 2018.
The Fed’s change of policy framework, which will see interest rates staying a low levels for longer, has not only dragged on demand for the US Dollar but has also had a risk boosting effect across the broader market. The risk on trading climate on the knowledge that the Fed has the market’s back is sending the risk sensitive Aussie Dollar surging.