Australian Dollar Struggles to Rebound

The Australian dollar has started the decline by the end of the previous trading session and extended its drop into the current session, even though news from Australia was somewhat positive for the currency. With that said, the Aussie is trying to rebound currently and managed to erase losses against some of its rivals and trim them against others.

The Reserve Bank of Australia provided no surprises, leaving its main interest rate at 1.5% at today’s meeting. It is interesting to note that the central bank did not claim that the currency is too strong, though it said that “an appreciating exchange rate could complicate” for “the economy to make the necessary adjustments.”

Australia’ current account deficit shrank from A$15.9 billion in the June quarter to A$11.4 billion in the September quarter whereas forecasters had predicted a decrease to just A$13.6 billion.

AUD/USD was down from 0.7471 to 0.7430 intraday before trading at 0.7454 as of 11:24 GMT today. AUD/JPY opened at 85.04, dropped to the low of 84.55 intraday, but bounced to 84.91 later.

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