The Australian dollar is higher today, thanks in part to the recent decision to strengthen the yuan. However, the gains are likely to be short-lived, as the Australian economy relies heavily on China.
Today, Aussie is regaining some ground lost recently. Australian dollar has been hit by difficulties in China, as well as a drop in the commodities market. Right now, though, there is some support for the Australian dollar.
Chinese leaders announced that they are strengthening the yuan. The news was unexpected in the wake of last week’s big stock market losses. Additionally, it looks as though those losses might not be at an end. However, Aussie is stronger anyway on the news.
Also helping the Australian dollar is the fact that some analysts expect reasonably strong unemployment figures later this week. As long as the unemployment rate remains below six per cent, according to some, there could be some limited strength for the Aussie.
However, with world markets in turmoil, and China likely to struggle more, along with lower commodities, it’s unlikely that the Aussie will be able to retain today’s gains.
At 15:03 GMT AUD/USD is up to 0.7025 from the open at 0.6967. EUR/AUD is down to 1.5462 from the open at 1.5670. GBP/AUD is down to 2.0769 from the open at 2.0845.
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