The Australian dollar rose today even though neither domestic macroeconomic data nor the general market sentiment was supportive for the currency. It looks like traders thought yesterday’s mind-boggling losses were a bit excessive.
Conference Board reported today that the leading index for Australia dropped 0.2 percent in June after rising at the same rate in the preceding month. The report followed the Monday’s news from China that hurt most currencies, including the Aussie. The Australian currency tumbled 2.2 percent against the US dollar and plunged as much as 5.2 percent versus the Japanese yen during yesterday’s trading session. It is not a surprise to see some form of correction after such a big move.
AUD/USD rose from 0.7154 to 0.7185 as of 9:31 GMT today. AUD/JPY advanced from 1.4 percent from 84.70 to 95.92.
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