The Australian dollar was little changed today, but earlier at this trading session it, guess what, reached the new record versus the US dollar.
The Australian currency shows no sign of the expected correction, predicted by analysts. That’s even more surprising, considering that there’s no major news to support such an astonishing performance, except the growth of the retail sales that was muted by the decrease of the building approvals. Gains of commodities may have played part in this rally, helping the Aussies as commodity currency. The Thomson Reuters/Jefferies CRB Index of raw materials gained 0.9 percent today.
Sean Callow, a senior currency strategist at Westpac Banking Corp., said: “There was a little bit of Aussie buying on todayâs data, mostly responding to retail sales beating expectation.” He also added that the currency is “very resilient”. Yet today’s retreat from the record make us question whether the Australian dollar is able to continue the rally or it lost its momentum. On the other hand, we’ve seen a new record before the retreat.
AUD/USD traded at 1.0334 as of 23:07 GMT after jumping from 1.0326 to another
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