Aussie dollar hits 2-week peak ahead of Fed rate verdict

The Australian dollar hit a two-week peak on Sept 18 due to wagers that the US Federal Reserve would kick-start its easing cycle with a big move, although that is far from certain and those gains could easily evaporate.

- 

The Aussie climbed to US$0.6773, the highest since Sept 3, although it is battling sellers at a key level of US$0.6767 after three sessions of gains.

Meanwhile, the Kiwi dollar rebounded 0.3 per cent to US$0.6202, having slipped 0.2 per cent overnight. Support comes in at US$0.6155 and US$0.6107, with resistance at US$0.6253 and US$0.6298.

Both have benefited from bets that the Fed would cut rates by half a point on Sept 18, with futures pricing in a chance of 64 per cent for such a move. That came despite strong retail sales data that failed to move the needle much on the size of the imminent rate cut.