Aussie Falls on Weak GDP

Australian dollar is down across the board today, falling as weak GDP data weighs. Aussie is down against all of its major counterparts as concerns about what’s next for the Down Under economy, as well as general risk aversion, send the currency lower.

The latest GDP figures for Australia are in, and it shows that annual growth has slowed to 2.5 per cent. This represents the weakest growth in two years. Additionally, it’s not helping that Chinese data has been somewhat weak recently. China is a major trading partner for Australia, and much of Australia’s exports go to the world’s second-largest economy. With Chinese demand expected to weaken, the Australian economy doesn’t look that great.
There are also expectations that the Reserve Bank of Australia could decide to cut interest rates in the near future. This is also contributing to general Aussie weakness. There is risk aversion in the market today, but the Australian dollar has its own fundamental issues as well.
Aussie touched 94.35 US cents during the session; this is a low not seen for 33 months. It also represents a 10.5 per cent drop since the middle of April.
At 13:27 GMT AUD/USD is down to 0.9488 from the open at 0.9542. AUD/JPY is down to 93.9495 from the open at 94.5150. EUR/AUD is up to 1.3844 from the open at 1.3723.

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