Currency news: AUD hits a two-week high ahead of Federal Reserve Meeting/EUR declines

Published: Tuesday, 30 April 2013 10:00 BST - Written by Tim Boyer

STORY LINK Currency news: AUD hits a two-week high ahead of Federal Reserve Meeting/EUR declines

The Australian Dollar has risen to its highest level in two-weeks against the US Dollar as the market awaits the outcome of the US Federal Reserve’s two-day meeting; speculation is growing that the Central Bank will choose to maintain its bond purchasing programme in the foreseeable future.

The ‘Aussie’ is also traded up against the New Zealand Dollar and most of its major peers after Asian stocks of the currency increased and as economic data showed that private sector credit increased in March. The rise against the ‘Kiwi’ came after the smaller Oceanic nation posted an unexpected decline in building approvals, easing pressure on the Reserve Bank to tighten monetary policy.

In Europe the Euro has declined against the US Dollar falling from a one-week high as speculation mounts that the European Central Bank will choose to lower its key interest rate when policy makers meet in two days time. The common currency also declined against the Pound and the rest of its major peers after data showed that inflation in the region has declined.

The ECB is expected to cut the already record low interest rate of 0.75% by 25 basis points to 0.50% in a bid to try and get the Eurozone economy moving in the right direction. Unemployment data out of the region has reinforced the belief that a rate cut is imminent after the number of people out of work in Germany increased by a larger-than-expected margin.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts