Australian Dollar Drops to Its Lowest Level in Nearly a Month

The Australian dollar continued falling on Friday to extend its weekly loss. The currency remained vulnerable to concerns that the Australian economy could be negatively affected by new Trade policies in the USA following Donald Trump’s presidency.

Traders are waiting for more decisive signals on wither Trump’s promised plans of changing or renegotiating the US trade agreements with Australia and a number of other countries are still in place. Hints regarding the probability of these plans becoming a reality will be quite influential on the movement of the Australian dollar during the coming weeks.
Commodities offered the Australian currency no support as commodity prices remained under pressure due to losses that continue to cap their gains. The commodity dependent currency traded near its lowest level in a month as gold spot price lost more than 30 dollars today, which further fed negative sentiments against the Australian dollar.
On the other hand, the US dollar maintained its strong performance for the third day in a row in a surprising reaction to the result of the US election. The firmer dollar is adding to commodities’ burden as the increased purchasing power of the US currency undermines gains in commodity prices.
AUD/USD traded at 0.7545 as of 21:58 GMT after the pair started the day at 0.7610. AUD/USD touched 0.7525 at 16:26 GMT, its lowest level since October 13. The pair continued to drop from 0.7776 on November 8, its highest level since April 20.

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