{"id":47075,"date":"2019-10-18T10:00:17","date_gmt":"2019-10-18T14:00:17","guid":{"rendered":"https:\/\/currencylive.com\/?p=47075"},"modified":"2019-10-18T08:31:08","modified_gmt":"2019-10-18T12:31:08","slug":"101267-aud-usd-australian-dollar-hits-1-month-high-on-a-more-hawkish-lowe","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101267-aud-usd-australian-dollar-hits-1-month-high-on-a-more-hawkish-lowe\/","title":{"rendered":"AUD\/USD: Australian Dollar Hits 1 Month High On A More Hawkish Lowe"},"content":{"rendered":"<p>The Aussie dollar was trending higher for the third straight session versus the US dollar on Friday. The Australian dollar US dollar exchange rate rallied to US$0.6845, a 1 month high. The pair is on track to gain 0.8% across the week, its third straight week of gains.<\/p>\n<p>Today&#8217;s fresh advance in the Aussie was sparked by more hawkish than expected comments from the Reserve Bank of Australia\u2019s (RBA) Governor Dr Philip Lowe. A more upbeat Dr Lowe said that negative interest rates were &#8220;extraordinarily unlikely&#8221;. He also talked down the prospect of more rate cuts, saying that the economy is expected to return to \u201ctrend growth\u201d next year. This will boost unemployment and lift inflation.<\/p>\n<p>His comments come after a solid labour market report which showed that the level of unemployment unexpectedly dropped to 5.2%.<\/p>\n<p>Following the upbeat comments, financial markets are now assuming a 16% probability of interest rates being cut in November. This is down from a 40% probability just a few days ago. As fears of a rate cut ease, the Australian dollar has increased in value.<\/p>\n<p>&nbsp;<\/p>\n<table width=\"602\">\n<tbody>\n<tr>\n<td><strong>Why do interest rate cuts drag on a currency\u2019s value?<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Interest rates are key to understanding exchange rate movements. Those who have large sums of money to invest want the highest return on their investments. Lower interest rate environments tend to offer lower yields. So, if the interest rate or at least the interest rate expectation of a country is relatively lower compared to another, then foreign investors look to pull their capital out and invest elsewhere. Large corporations and investors sell out of local currency to invest elsewhere. More local currency is available\u00a0 as the demand of that currency declines, dragging the value lower.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h3><strong>Fed Speeches Up Next<\/strong><\/h3>\n<p>The US dollar was trading broadly lower versus its peers on Friday. Dollar investors shrugged off gloomy Chinese GDP data. Third quarter GDP figures showed that the Chinese economy grew 6%. This was down from 6.2% in the second quarter and the lowest GDP reading in almost 3 decades. The data underscores the negative impact that the ongoing US \u2014 Sino trade dispute is having on the world\u2019s second largest economy. Usually weak data from China unnerves investors, sending them in search of the US dollar for its safe haven properties. This hasn\u2019t been the case today.<\/p>\n<p>Looking ahead US dollar investors will focus on speeches from US Federal Reserve policy makers. Earlier in the week President of the Federal Reserve Bank of New York, John Williams, had expressed satisfaction with the US economy. He was reluctant to cut interest rates again. Today it is the turn of his colleagues, Esther George, Robert Kaplan and Vice Chair Richard Clarida. Any hints of dovishness could send the dollar lower.<\/p>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>What do these figures mean?<\/strong><\/td>\n<\/tr>\n<tr>\n<td>When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.<\/p>\n<p>For example, it could be written:<\/p>\n<p><em>1 USD = 0.6784 AUD<\/em><\/p>\n<p>Here, $1 is equivalent to approximately A$0.67. This specifically measures the US dollar\u2019s worth against the Australian dollar. If the Aussie dollar amount increases in this pairing, it\u2019s positive for the US dollar.<\/p>\n<p>Or, if you were looking at it the other way around:<\/p>\n<p><em>1 AUD = 1.4739 USD<\/em><\/p>\n<p>In this example, A$1 is equivalent to approximately $1.47. This measures the Australian dollar\u2019s worth versus the US Dollar. If the US dollar number gets larger, it\u2019s good news for the Aussie dollar.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h6><em>This publication is provided as general information only and is not intended as an exhaustive treatment of its subject. TransferWise Inc. and its affiliates (&#8220;we&#8221; or &#8220;us&#8221;) expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of this publication, and you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from us.\u00a0 We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"<p>The Aussie dollar was trending higher for the third straight session versus the US dollar on Friday. The Australian dollar US dollar exchange rate rallied to US$0.6845, a 1 month high. The pair is on track to gain 0.8% across the week, its third straight week of gains. Today&#8217;s fresh advance in the Aussie was [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":3554,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1547,1381],"tags":[1540,1578,1541,1399,1559,1542,1415,1508,1397,1398],"class_list":{"0":"post-47075","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-aud","8":"category-usd","9":"tag-aud","10":"tag-aussie-dollar","11":"tag-australian-dollar","12":"tag-china","13":"tag-lowe","14":"tag-rba","15":"tag-trade-dispute","16":"tag-unemployment","17":"tag-us-dollar","18":"tag-usd"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AUD\/USD: Australian Dollar Hits 1 Month High On A More Hawkish Lowe - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/101267-aud-usd-australian-dollar-hits-1-month-high-on-a-more-hawkish-lowe\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101267-aud-usd-australian-dollar-hits-1-month-high-on-a-more-hawkish-lowe\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101267-aud-usd-australian-dollar-hits-1-month-high-on-a-more-hawkish-lowe\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"AUD\\\/USD: Australian Dollar Hits 1 Month High On A More Hawkish Lowe\",\"datePublished\":\"2019-10-18T14:00:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101267-aud-usd-australian-dollar-hits-1-month-high-on-a-more-hawkish-lowe\\\/\"},\"wordCount\":727,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101267-aud-usd-australian-dollar-hits-1-month-high-on-a-more-hawkish-lowe\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100016-positive-budget-sends-high.jpg\",\"keywords\":[\"aud\",\"Aussie dollar\",\"australian dollar\",\"china\",\"lowe\",\"rba\",\"trade dispute\",\"unemployment\",\"us dollar\",\"usd\"],\"articleSection\":[\"AUD\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101267-aud-usd-australian-dollar-hits-1-month-high-on-a-more-hawkish-lowe\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101267-aud-usd-australian-dollar-hits-1-month-high-on-a-more-hawkish-lowe\\\/\",\"name\":\"AUD\\\/USD: Australian Dollar Hits 1 Month High On A More Hawkish Lowe - 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