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16 Sep 2013
AUD gains on boost to risk assets
FXstreet.com (London) - The Aussie dollar shot to a three-month high on a combination of the news that Larry Summers had withdrawn himself from the race to become the next Fed Chairman, and that the US and Russia had agreed to co-operate to control problems in Syria.
Perceived hawk Larry Summers was replaced as favourite to take over the Fed chair from Ben Bernanke. This followed Summers’ letter to President Obama, withdrawing himself from the race. Janet Yellen, the new favourite, is a much more dovish – leading to expectations that the Fed will leave the QE taps on for longer. Good news for commodity currencies like the Aussie dollar and the Kiwi, who saw the biggest gains on the Summers news.
The news of a US-Russia agreement to police Syrian chemical weapons claims comes as further positive news for risk assets, helping to push flows into the Aussie in the hint for higher yields.
The Australian 10-year note has shed 11 points, to 3.97 percent. AUD/USD hit a high of USD0.9387 before rebounding. It remains up 1 percent on the session.
Perceived hawk Larry Summers was replaced as favourite to take over the Fed chair from Ben Bernanke. This followed Summers’ letter to President Obama, withdrawing himself from the race. Janet Yellen, the new favourite, is a much more dovish – leading to expectations that the Fed will leave the QE taps on for longer. Good news for commodity currencies like the Aussie dollar and the Kiwi, who saw the biggest gains on the Summers news.
The news of a US-Russia agreement to police Syrian chemical weapons claims comes as further positive news for risk assets, helping to push flows into the Aussie in the hint for higher yields.
The Australian 10-year note has shed 11 points, to 3.97 percent. AUD/USD hit a high of USD0.9387 before rebounding. It remains up 1 percent on the session.