It’s been a choppy morning of trading so far, thanks in large part to the surprise data that shows Japan is in recession. The move has certainly impacted the Australian dollar, leading to wild swings in earlier trading. Now, though, the Aussie has settled down a little bit and is moving lower against most of its major counterparts.
Aussie has had a rather eventful start to the week, thanks in large part to the surprise news out of Japan. The Asian powerhouse fell into recession unexpectedly, prompting the Australian dollar to spike against the Japanese yen. However, following that spike, the Aussie swung wildly, dropping against the yen, and swinging against other currencies as well.
Now, things have calmed down a bit in Forex trading, and the Australian dollar has settled to losses on the day so far. The Australian economy relies heavily on Asian economies for trade, including China and Japan. With China’s recent slowdown fears, and now Japan sliding into recession, it looks as though things might be more difficult for the Australian economy.
At 11:27 GMT AUD/JPY has moved lower, falling to 101.5650 from the open at 102.1550. AUD/USD is also lower, dropping to 0.8737 from the open at 0.8772. AUD/NZD is down as well, moving to 1.1028 from the open at 1.1082.
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