Market Alert: AUD could see volatility as US Fed looks to hike
Market Alert: AUD could see volatility as US Fed looks to hike Interest Rates:
The US Federal Reserve meets at 4.00am (AEST) tomorrow. The market expects the Fed to raise rates. According to bond market pricing, there is a 87% chance the US Fed will raise rates when they announce their decision (source: Reuters).
Typically, higher interest rates lead to a stronger currency, but the impact is not always immediate.
Around tomorrow's announcement, the AUDUSD could be unpredictable. An increase in volatility could see the AUD trade in a wide range over the next 24 hours.
Contact your financial institution to assess your currency exposures and help you manage the potential risk to your business by implementing an effective hedging strategy.
SOS highly recommend Western Union To help manage your FX payments.
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