The Australian dollar was mixed today, trading basically flat against its US counterpart, rising against the euro, but falling versus the Japanese yen. Fundamentals, which were mixed themselves, did not help the currency to find a direction.
The People’s Bank of China announced that it is cutting the reserve ratio requirements for most commercial banks by 1%. While it helped to mitigate the impact of the falling Chinese stocks on the Forex market, the news was not enough to eliminate the negative influence completely.
Macroeconomic news from China, Australia’s biggest trading partner, was good. The seasonally adjusted Caixin China General Services Business Activity Index climbed from 51.5 in August to 53.1 in September, reaching the highest level in three months. Analysts had predicted the index to stay almost unchanged.
Economic data in Australia itself was not nearly as good. ANZ Australian Job Advertisements fell 0.8% in September, on a seasonally adjusted basis, following the 0.7% drop in the previous month.
AUD/USD traded at 0.7064 as of 11:18 GMT today after opening at 0.7054 and falling to the daily low of 0.7041. EUR/AUD dropped from 1.6321 to 1.6236. AUD/JPY declined from 80.25 to 80.09.
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