Cautious FOMC minutes force USD lower
Thursday 25th of May
The Australian dollar was marred yesterday by Moody’s downgrade in China’s credit rating. Initially starting the day at 0.7475 against the US dollar, markets saw a third of a cent shed on the Aussie after news came to light of the first downgrade by Moody’s in China since 1989 from Aa3 to A1. The Construction work print for the month also saw a contraction for the month as the afternoon saw an intraday low of 0.7445. The Fed Reserve minutes released overnight supported the view of a “probable” June rate hike with the Greenback reacting negatively to the news, hoping for a more hawkish tone. This caused the Aussie to rally back up and test the 0.75 handle on open this morning.