The Australian dollar weakened today, following the huge leap up in the last week, on the speculation that the currency has rallied too much, while the global economic growth might slow.
The U.S. retail sales estimated to decline by 0.3 percent in June, while the consumer price index expected to drop by 0.1 percent. There were the good news also, limiting the losses of the Aussie. The Standard & Poorâs 500 companies’ profits estimated to increase by 34 percent in the period from April through June.
The company earnings and not that bad forecast for the U.S. economy have buoyed the Australian currency. Yet there weren’t enough good news to support the fast rally, which the currency showed the last week, leaping from $0.8412 to $0.8772.The analysts expect the Australian dollar to reach $0.8860 this week.
AUD/USD dropped to 0.8752 as of 17:18 GMT today after it opened at 0.8774. AUD/JPY fell to about 77.52 from the opening price of 77.79.
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