Australian Dollar Struggles to Keep Gains, Data Weighs

The Australian dollar rallied today, following yesterday’s policy statement from the Federal Reserve. The currency struggled to maintain gains, though, as today’s macroeconomic data was unfavorable.

Yesterday, the Fed released a statement that was considered by most market participants to be dovish, and it bolstered riskier currencies. Yet the Aussie had troubles preserving bullish momentum, and the drop of Australia’s Import Price Index by 0.1% in the June from the previous three months was certainly not helping. It was a far worse reading that an increase by 0.7% promised by specialists and the 1.2% gain in the March quarter.

AUD/USD was at 0.8015 as of 10:09 GMT today after opening at 0.8004 and rising to 0.8065 intraday — the highest rate since May 2015. EUR/AUD opened at 1.4654 and dropped to 1.4564 before trading at 1.4616.

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