Australian dollar is vulnerable right now, and heading lower against its major counterparts. Worries about the economic situation in China, as well as concerns about commodities, are weighing on the Aussie today.
China is Australia’s biggest export market, and when China starts to slow down, things slow for Australia as well. With the prospect of slowing in China, the Aussie is seeing some losses against its major counterparts on the Forex market. Not only is the Aussie suffering as a result of the Chinese pullback, but it is also losing its attractiveness as a short bet in hedge funds, thanks to questions about what the Reserve Bank of Australia will do next.
It’s also not helping that commodities are struggling as well. Australia is closely tied to the performance of gold, since it is a major commodity export. As a result, when gold prices are lower, the Aussie tends to follow suit. With gold dropping today, it is little surprise that, along with everything else, this is another pressure point for the Australian dollar.
At 14:38 GMT AUD/USD is lower, heading down to 0.8975 from the open at 0.9013. EUR/AUD is higher, moving up to 1.5250 from the open at 1.5243. This is one of the few currencies that euro is gaining against today. GBP/AUD is up to 1.8559 from the open at 1.8490.
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