The Australian dollar dropped after the Reserve Bank of Australia increased its currency sales and as fundamentals were not supportive for assets associated with risk. The Aussie managed to outperform the Japanese yen.
Australia’s central bank extended its sales of the domestic currency last month. The RBA sold A$483 million more than it bought in October.
Demand for the Australian dollar was limited amid risk aversion on the currency markets. Poor macroeconomic data from Europe and the United States fueled talks about global economic slowdown, hurting appeal of currencies related to growth. Yet even in such an environment the yen remained so weak that the Aussie managed to outperform Japan’s currency.
AUD/USD dropped from 1.0372 to 1.0329 yesterday and traded at 1.0331 as of 4:00 GMT today. EUR/AUD traded at 1.2357 today after yesterday’s jump from 1.2272 to 1.2367. Meanwhile, AUD/JPY rose from 83.23 to 83.83 on yesterday’s session and remained at that level today.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.