Aussie Heads Lower on Possible Rate Cut

Earlier this month, Glenn Stevens, the Governor of the Reserve Bank of Australia, indicated that there is a chance that Aussie rates will be cut. Now that the minutes of the October 4 meeting are on the verge of being released, there are concerns about the Aussie in forex trading.

Recently, the Australian dollar has had quite the run up against the US dollar. However, considering the way things have been going, and the uncertainty facing the global economy, some Forex traders now think that the big gains might have been a little premature.
Aussie is also struggling against other major currencies. Against the euro, Aussie has been see-sawing for most of the session bouncing between gains and losses. The same is true of the Aussie’s performance against the UK pound.
With the sovereign debt situation in Europe far from solved, and with concerns about the fact that China seems to slowing as well (China is a major trading partner for Australia), as well as the recent struggles experienced by gold, it is little surprise that the Australian dollar is seeing a pullback. There is just too much uncertainty right now, and Forex traders are looking for a safe haven — which means gains for the US dollar on the Forex market.
At 15:14 GMT, AUD/USD is down to 1.0247 from the open at 1.0327. GBP/AUD is higher at 1.5394 versus the open at 1.5325. EUR/AUD is very slightly down, having just dropped to 1.3421 from the open at 1.3427.

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