The Australian dollar wasn’t been able to profit from the rally of commodities and continued to fall as the floods, which are worst since 1893, threaten to disrupt the nation’s economy and can prevent the central bank from raising the interest rates.
Brisbane experienced its worst floods since 1893 as heavy rains caused the rivers to overflow the banks and huge amount of water ran to the city, forcing the inhabitants to evacuate. Premier Anna Bligh announced that 10 were dead and more than 90 missing in the northeastern state of Queensland as of January 10th. The death toll may increase yet as the specialists forecast that the situation may worsen.
The MSCI Asia Pacific Index of shares rose 0.4 percent today and the Thomson Reuters/Jefferies CRB Index of raw materials climbed as much as 1.4 percent as commodities sharply rallied after the previous decline. The Aussie could’ve profited from stronger commodities, but the floods hampered the currency’s appreciation. Moreover, the disaster made the future monetary policy unclear, further decreasing attractiveness of the Aussie.
AUD/USD went down from 0.9871 to 0.9855 as of 03:42 GMT today after yesterday’s decline from 0.9955 to 0.9870. EUR/AUD rose from 1.3139 to 1.3196 after it jumped yesterday from 1.3004 to 1.3140.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.