08 November, 2018
AUD/USD remained high on Thursday to trade slightly below the rate of 0.7300. The dollar traded in a narrow range on Thursday as markets settled after U.S. midterm election results came in as expected, leaving investors free to focus on a Federal Reserve’s policy decision later in the global day. The central bank’s Federal Open Market Committee (FOMC) is expected on Thursday to maintain the hawkish language seen in recent policy statements, while keeping interest rates unchanged this time. The Fed has raised rates three times this year as the U.S. economy boomed and inflation started to pick up, and it has signalled a rate rise in December. The Aussie on the other hand, received a decent boost from improved risk- on sentiment as split Congress in the US should not be bad after all. The Aussie was also supported by overnight data in China. China reported stronger-than-expected exports for October as shippers rushed goods to the United States, its biggest trading partner Exports rose 15.6% last month from a year earlier, picking up pace from September’s 14.5%. The reading handily beat analysts’ forecasts in a Reuters poll for a slowdown to 11.0%. Growth in imports for October quickened to 21.4% from 14.3% in September, again beating analysts’ forecast for a slight cooling to 14.0%. Later this afternoon US Initial Jobless Claims will be revealed, while tonight (19:00 GMT) US Federal Reserve will announce their latest monetary policy decision.