Aussie is heading lower right now, thanks in large part to uncertainty and risk aversion. Lower stocks and commodity losses earlier are contributing to a lower Australian dollar right now.
Earlier, commodities including gold and oil fell back. Even though both commodities are moving higher right now, commodity currencies like the Australian dollar remain spooked.
Aussie is struggling right now, after seeing some earlier gains, thanks in large part to risk aversion that has cropped up in the markets. Concerns about China are still affecting the market. The yuan’s midpoint has been set higher than a day earlier, and the IMF has signalled that it will be at least a year before the yuan is granted reserve currency status. However, there is still plenty of uncertainty to fuel risk aversion.
Global stocks are heading lower today, and US stock futures point to a lower open. With investors unwilling to take on that risk, the Aussie is struggling. Additionally, it is unclear what China will do next, and Australia relies heavily on China as a trading partner.
At 12:57 GMT AUD/USD is lower, dropping to 0.7311 from the open at 0.7348. AUD/JPY is down to 90.6340 from the open at 90.9590. AUD/NZD is down to 1.1064 from the open at 1.1129.
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