{"id":9082,"date":"2010-05-04T08:28:44","date_gmt":"2010-05-04T12:28:44","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9082"},"modified":"2010-05-04T08:28:44","modified_gmt":"2010-05-04T12:28:44","slug":"aud-falls-despite-another-interest-rate-hike","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/04\/aud-falls-despite-another-interest-rate-hike\/","title":{"rendered":"AUD Falls despite another Interest Rate Hike"},"content":{"rendered":"<p><strong>By Ashley Smith<\/strong> &#8211; Australia\u2019s central bank increased the benchmark interest rate for  the 6th time to 4.5% from 4.25%. The accompanying statement sent  slightly mixed signals, flagging inflation concerns but also hinting to a  pause in the monetary policy tightening stating that borrowing costs  have returned to \u201caverage\u201d pre global recession levels, ending the  monetary stimulus.<\/p>\n<p>The AUD dropped sharply as a result of the statement as it dampened  investors\u2019 expectations the current pace of monetary tightening will  continue and that the central bank may keep rates on hold for the next  few months. The AUD fell to a low of 91.86 U.S cents following the  release.<\/p>\n<p>This is may be a good opportunity to turn to the New Zealand Dollar  which is normally shadowed by the AUD. While the Australian central bank  hinted at a pause in interest rate hikes, the New Zealand central bank  stated last week it expects to begin raising rates \u201cin coming months.  Furthermore, economic fundamentals are coming better than expected  recently, supporting the assumptions the central bank will start  tightening monetary policy soon. Whereas the AUD\u2019s rally may be stalled  in the near future, the NZD may yet be undervalued and provide  interesting investment opportunities.<\/p>\n<p><em><strong>Forex Market Analysis<\/strong><\/em> provided by\u00a0<a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\"><strong>Forex                             Yard.<\/strong><\/a><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                             may not be suitable for all investors. There    is  a              possibility      that     you   could sustain a  loss   of  all   of    your         investment and      therefore  you        should   not    invest   money  that   you      cannot afford to         lose. You    should    be      aware of   all   the    risks      associated with     Foreign      Exchange    trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Ashley Smith &#8211; Australia\u2019s central bank increased the benchmark interest rate for the 6th time to 4.5% from 4.25%. The accompanying statement sent slightly mixed signals, flagging inflation concerns but also hinting to a pause in the monetary policy tightening stating that borrowing costs have returned to \u201caverage\u201d pre global recession levels, ending the &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/05\/04\/aud-falls-despite-another-interest-rate-hike\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;AUD Falls despite another Interest Rate Hike&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-9082","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9082","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=9082"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9082\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}