Our Australian Dollar Continues To Be A Hot Topic, US Share Markets Experiencing GFC Volatility Levels

Our Australian dollar is a hot topic of conversation. It has fallen against the US nearly 30% in the last 2 and a bit years and could be even more vulnerable if the US lift interest rates in coming days.

Late last week the AUD jumped higher through trade on Friday benefiting from a return in risk appetite, breaking back above 0.7050. Global growth concerns and general volatility across currency markets forced a sell-off in commodity driven currencies throughout August forcing the AUD below the psychological 0.70 barrier for the first time in 6 years.

As risk aversion eases attentions are drawn again toward central bank’s monetary policies and the U.S Federal Reserve takes centre stage as its Federal Open Market Committee convenes later this week in what is a much anticipated meeting and marker for future policy guidelines.

With many investors anticipating the FOMC will maintain the status quo, leaving interest rates near zero, the Greenback succumb to selling pressure into the close on Friday. Today’s economic calendar is free of headline macroeconomic indicators and we anticipate the AUD will maintain a tight trading band through Monday with some upside support potential in response to moves to privatise state owned enterprises through China in a bid to increase competitiveness across manufacturing and industrial sectors. Tuesday’s RBA monetary policy meeting minutes headline the week’s domestic docket with attentions keenly focused on Wednesday and Thursday’s Fed policy meeting.

On a different notea couple of weeks ago we were asked what is a comfortable retirement and how muchdo you need?The Current Affair interview can be viewed here.Click here to see our thoughts.To market news just another standard week last week of market volatility, Australia with sluggish GDP growth, current account blowout, dollar at 6 year lows below 70 US cents, share market upheaval globally.

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