Friday’s euphoria has gone from the Forex market and riskier commodity currencies retreated, following the sharp rally in the last trading day of the previous week. The Australian dollar was among losers. Not surprisingly, the Aussie managed to outperform the euro.
Good mood, caused by the last week’s European summit, was gone from the FX market and traders looked at the eurozone in less positive light. Finland’s government stated that it considers bond buying as an “inefficient way to stabilize markets”. Moreover, Dutch finance ministry spokesman said that the prime minister “is not in favor of buying up bonds”. Both Finland and Netherlands opposed operations of the European Stability Mechanism in the secondary markets.
Fundamentals were poor in the United States and the eurozone. What is more, macroeconomic data for Australia itself was not shining either. The Melbourne Institute Monthly Inflation Gauge decreased by 0.2 percent in June, following the flat result in May. The commodity price index fell by 10.5 percent in June on an annual basis, following the 10.2 drop in May.
AUD/USD was down from 1.0248 to 1.0237 and AUD/JPY retreated from 81.47 to 81.33 as of 00:16 GMT today. At the same time, EUR/AUD sank from 1.2345 to 1.2272 yesterday before trading at 1.2282 today.
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