The Australian dollar gained today, joining other currencies that reversed their previous losses and rallied. Domestic fundamental data also helped Australia’s currency to overcome its bearish momentum, at least for now.
The Conference Board Leading Index for Australia rose 0.5 percent in July after increasing 0.2 percent in the previous month. Yet the report was not entirely positive, saying:
The strengths among the leading indicators have become less widespread over the past six months.
Similar to some other currencies, the Aussie moved today inversely to its previous trend, rallying instead of falling further. Traders should be cautious of possibility that the currency may resume its decline later as it has done yesterday. The Aussie dollar was rising at the start of yesterday’s session but ended trading with losses.
AUD/USD rose from 0.8839 to 0.8886, and AUD/JPY advanced from 96.25 to 96.46 as of 7:44 GMT today. EUR/AUD dropped from 1.4533 to 1.4469.
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