The Australian dollar got a shot of adrenaline after the Federal Reserve\’s midday Wednesday pledge to keep rates low until at least late 2014.
Commodity-linked currencies like the Australian dollar have been some of the most responsive to Fed efforts to keep rates near zero and push extra money into the economy. Cheap U.S. dollar loans have supported what\’s known as the dollar-carry-trade. And the chart of the Australian dollar vs. the greenback after the Fed\’s rate statement shows that this carry trade isn\’t about to fade away.
The Aussie, which had pushed above $1.05 in Asian trading after a domestic inflation reading, then fallen in U.S. trading, recently was up at $1.0588.
– Laura Mandaro
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