Aussie dollar gains overnight on fresh signs of ECB stimulus
Xinhua, October 23, 2015 Adjust font size:
The Aussie dollar has climbed higher after the European Central Bank kept rates on hold and flagging readiness to step up its stimulus program.
At 0700 local time (AEDT) on Friday, the currency was trading at 72.13 U.S. cents, up from 71.96 U.S. cents on Thursday.
ANZ senior FX manager Sam Tuck said the Aussie had an initial spike overnight after the ECB indicated further stimulus could be on the table at its December meeting.
"But one of the key considerations for the ECB was global growth concerns, especially the risks emanating from emerging markets," Tuck said.
ECB's words echoed that of the U.S. Federal Reserve which delayed lifting rates in September over fears from Asian markets.
Currency strategists say the Australian dollar is likely to come under downward pressure as stimulus lifts from both the ECB and Bank of Japan to protect their economies from emerging risk, while commodity prices remain heavy.
"The Aussie is caught in the middle of that," Tuck said.
"It's a developed market and a source of safety for cash but it's also highly exposed to emerging markets."
At 1010 local time (AEDT), the local unit was trading at 72.07 U.S. cents. Endit