Aussie is down against the US dollar as risk aversion continues today, but up against the euro. Concerns about the eurozone crisis have sharpened, and that has investors and Forex traders alike jumpy about what could be next for the global economy. As a result, the Australian dollar is seeing gains against a weaker euro, but losses against the greenback, which is used as a safe haven.
Indeed, the eurozone is back in focus today as Italy’s largest bank insists that it needs more capital. The news sent Asian stocks, including the S&P ASX index in Australia, lower today, and brought the Aussie down against the US dollar. It’s also not helping the Australian dollar that gold prices are lower, and that there are new concerns about Chinese growth going forward.
Even though Aussie is down against the greenback, it is still gaining against European currencies. Aussie is higher against the euro, which appears to be struggling mightily as concerns about the next phase of the eurozone debt crisis reach a new level, and it is also higher against the Great Britain pound, which is exposed to eurozone banks.
At 14:29 GMT AUD/USD is lower at 1.0271, down from the open at 1.0326. EUR/AUD is lower at 1.2468, down from the open at 1.2518. GBP/AUD is down to 1.5088 from the open at 1.5112.
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