Aussie Dollar Runs Higher on Fed Backtracking

[kreslik.news]

Weeks of hawkish policy comments driving US dollar momentum higher were not enough to offset Federal Reserve Chair Janet Yellen’s counseling for “caution” on the topic of interest rate normalization.

With her shadow looming large over the financial markets, the commentary serves as a setback for market participants anticipating an April rate hike based on the support of several key voting officials on the Open Market Committee.

Points raised by Yellen during her remarks in front of the Economic Club of New York seemed to highlight rising anxiety on the part of policymakers and a willingness to consider renewed accommodation, sparking ... (read more)