The Australian dollar surged yesterday as most other currencies, but today it relinquished its gains as the domestic fundamentals hurt the prospects of the currency.
The Aussie (as the Australian currency is nicknamed) rallied yesterday after the announcement that the central banks of the developed nations agreed to make the dollar cheaper in swaps among banks. The cheaper greenback made all other currencies rally. Commodities priced in dollars also jumped, adding to the rally of the
So why the Aussie is falling now? The set of fundamental reports from Australia was released today and it wasn’t good. The Australian building approvals slumped 10.7 percent from September to October. That’s somewhat better than the September drop of 14.2 percent, but nothing near the optimistic forecast of a 3.6 percent growth. The retail sales increased at the seasonally adjusted rate of 0.2 percent, while the same 0.4 percent rate of growth was expected by market analysts.
AUD/USD dropped from 1.0282 to 1.0220 and AUD/JPY fell from 79.79 to 79.32 today as of 2:17 GMT. EUR/AUD as up from 1.3071 to 1.3155 today, following the yesterday’s slump from 1.3311 to 13072.
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