AUD/USD Hits 11-Week High as US Treasury Buyback Plan Takes Hold
The Australian dollar has reached an 11-week high against the US dollar, fueled by the US Treasury's surprise buyback plan and a weaker US dollar. The AUD/USD exchange rate is now within striking distance of 72c.
The upcoming Jackson Hole symposium will be closely watched for Fed Chair Kevin Warsh's speech, which may provide clarity on the Federal Reserve's next steps in managing inflation and interest rates. Traders are looking for reassurance that the Fed is not itching to hike rates, which could weigh on yields and the US dollar, providing a tailwind for the AUD/USD exchange rate.
A quick look at past Jackson Hole speeches suggests that the AUD/USD exchange rate tends to rise on speech day, with positive average and median returns over the following two days. However, it's essential to remember that past performance is not indicative of future results.