Aussie Loses Ground Despite Support from Fundamentals

The Australian dollar slumped against its US counterpart and weakened against the euro even as both domestic and overseas economic news were positive for the currency, which was demonstrating remarkable strength last week.
Australia and New Zealand Banking Group reported that the number of job advertisements grew 1.5 percent in August from the previous month and 8 percent over a year, suggesting that the labor market is improving. Trade surplus of China, the biggest Australia’s trading partner, widened in August instead of falling as was predicted, expanding to $49.8 billion from $47.3 billion in the previous month. Yet the Aussie declined despite the supportive fundamentals even though the Australian currency has been the only major that was able to hold its ground against the very strong greenback last week.
AUD/USD tumbled from 0.9363 to 0.9282 as of 17:31 GMT today, while EUR/AUD advanced from 1.3832 to 1.3903.

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