The Australian dollar strengthened this morning following the U.S. Federal Reserve’s decision to cut interest rates by 0.25 percentage points. As of 7am (AEDT), the Aussie dollar was trading at US66.63 cents, according to The Sydney Morning Herald.
The rate cut by the U.S. central bank—bringing interest rates down to 3.6 per cent, the lowest level in nearly three years—is expected to spark a surge in the Australian share market today.
Federal Reserve Chair Jerome Powell indicated at a news conference that further rate cuts are unlikely in the near term, noting that the Fed will take time to assess overall economic conditions before making additional moves.
Meanwhile, Australian economists are awaiting the release of key employment data, scheduled for 11.30am (AEDT), which is expected to influence local market sentiment.
