Australian dollar is struggling today, falling after the Reserve Bank of Australia voted to remain in a holding pattern on interest rates. Additionally, Aussie is finding it difficult to overcome the issues related to slowing Chinese growth.
For the fourth month in a row, the Reserve Bank of Australia has kept rates at a low 2 per cent. While this move was expected, it still doesn’t do much to bolster the Aussie in Forex trading. Sluggish economic data has also been released recently, and more sluggish data is expected later this week. Any rate hike won’t come for quite some time.
The Aussie is also struggling due to slowing growth in China. China is one of Australia’s major trading partners, and with China slowing, there will be less demand for Australia’s products. Concerns about China are impacting markets all over the world, and the Aussie is suffering along with other commodity currencies.
On top of that, Aussie will likely remain especially weak against the US dollar. Policy divergence is expected as the Federal Reserve is expected to begin raising interest rates later this year.
At 13:43 GMT AUD/USD is down to 0.7050 from the open at 0.7113. AUD/NZD is down to 1.1111 from the open at 1.1224. AUD/JPY is falling to 84.6760 from the open at 86.2350.
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