Australian Dollar Trims Losses After Intraday Drop

The Australian dollar was down today but managed to trim its losses by now and to erase them almost completely against the US dollar.

The Australian dollar was hurt by the same factors as other currencies of emerging markets — the relatively hawkish Federal Reserve minutes and the drop of China’s imports and exports. Yet the Aussie had support from domestic fundamentals. The Melbourne Institute inflation expectations increased from 3.3% in September to 3.7% in October, supporting the view that Australia’s central bank will not feel the need to ease its monetary policy further.

AUD/USD traded at 0.7551 as of 12:24 GMT today after falling from 0.7560 to 0.7505 intraday. EUR/AUD was up from 1.4552 to 1.4603 but retreated from the daily high of 1.4664.

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