The Australian Dollar advanced on the Pound during early trading in London Tuesday and extended its recent gains over a broader basket of developed world currencies, after drawing support from higher commodity prices overnight.
The US dollar index, which measures the greenback against a basket of currencies, rose 0.3 per cent to 89.342. Westpac's Imre Speizer says the move extended Friday's rebound off a fresh three-year low.
Were they to pick up its unlikely that higher Australian interest rates would remain the distant prospect they now are. The coming week will offer another look at sentiment among both businesses and consumers.
While that helped to push the AUD/USD to as high as .7966 during Thursday's session, it did not help the Aussie against the crosses with losses recorded against all major pairs except the Canadian dollar. In particular, the Aussie underperformed ...
Now, assuming that the numbers don't disappoint and that the Fed sticks to its script and leaves markets expecting three more interest rate rises this year, then the US Dollar could recover some lost ground.