The Australian dollar fell today as signs of global economic slowdown made investors prefer safety to higher yield, resulting in lower demand for the currency.
News from the United States was bad, hurting riskier currencies. Data from China, the major trading partner of Australia, was not encouraging either. All in all, traders were on the defensive, leading to decline of stocks and commodities as well as currencies related to economic growth.
Domestic fundamentals were also negative for the Australian currency. Building approvals dropped as much as 5.5 percent on a seasonally adjusted basis in March instead of rising 1.2 percent as was predicted by analysts. It is not a surprise that the Aussie retreated amid such overwhelming negativity on the markets.
AUD/USD fell from 1.0276 to 1.0254 and AUD/JPY declined from 100.03 to 99.80 as of 3:02 GMT today. EUR/AUD advanced from 1.2818 to 1.2847.
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