Before the terror attacks in Paris, the Aussie was turning in a strong performance following better than expected economic data. As a result, some feel that the Reserve Bank of Australia will soon reduce its dovishness.
Risk aversion is the general trend today on the Forex market, due to the tragic terror attacks in Paris at the end of last week. As a result, high beta currencies like the Australian dollar are mostly lower today. However, in the case of the Aussie, the weakness might be short-lived.
The latest jobs report out of Australia destroyed expectations. Instead of adding 15,000 jobs to the economy, October employment data showed an addition of 58,600 jobs, bringing the unemployment rate down to 5.9 per cent.
Many think that this news, in spite of recent setbacks in the Chinese economy, could mean a turning point for the Aussie, and even for the Reserve Bank of Australia. The RBA might be less inclined toward dovishness if the Australian economy continues to show improvement, and that could lead to a rate hike, further helping the Australian dollar.
For now, though Aussie remains lower.
At 14:47 GMT AUD/USD is down to 0.7091 from the open at 0.7116. EUR/AUD is up to 1.5105 from the open at 1.5071. GBP/AUD is up to 2.1422 from the open at 2.1386.
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