The Australian dollar has climbed slightly higher after the European Central Bank kept interest rates on hold and flagged its readiness to step up its stimulus program.
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| The Aussie had a spike overnight. |
At 0700 AEDT on Friday, the currency was trading at 72.13 US cents, up from 71.96 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 next meeting, in December.
“But one of the key considerations for the ECB was global growth concerns, especially the risks emanating from emerging markets,” he said.
This dovetails with the US Federal Reserve’s message from September, that central banks are considering either delaying lift-off or increasing stimulus to protect their economies from risks in Asian economies, Mr Tuck said.
“It’s a developed market and a source of safety for cash but it’s also highly exposed to emerging markets.”
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