The improvement of the risk sentiment allowed the Australian dollar to bounce even though domestic macroeconomic fundamentals were not particularly supportive to the currency.
The rally of crude oil prices translated into good performance of commodity-geared currencies, including the Aussie. News from Australia itself was not good the leading index continued to weaken. Westpacâs Chief Economist Bill Evans commented:
The Index has now been growing below trend for the last nine months. It continues to signal that growth in the Australian economy in the first half of 2016 will be below trend.
AUD/USD traded at 0.7120 as of 13:37 GMT today after falling from 0.7109 to 0.7084 intraday. AUD/JPY was up from 81.08 to 81.30, bouncing from the session low of 80.34.
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