The Australian dollar dropped against its US counterpart due to negative economic data from Australia. At the same time, the currency managed to reverse its losses versus the Japanese yen and reached the highest level in a year and a half.
Australia’s seasonally adjusted building approvals dropped as much as 11.0 percent in September, more than ten times the predicted decrease by 0.9 percent. Additionally, China’s non-services Purchasing Managers’ Index declined last month, worsening prospects for Australian exports. The Reserve Bank of Australia will make its policy decision tomorrow, and it will be interesting to see how the latest data affected the central bank’s stance.
AUD/USD dropped from 0.8752 to 0.8703 as of 14:37 GMT today. AUD/JPY fell from 98.65 to 89.13 initially but bounced to 99.03 later, reaching the high of 99.19 intraday — the highest rate since May 2013.
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