The Australian dollar rose today following yesterday’s losses. The currency was weak on the previous trading session as the market sentiment was unfavorable for riskier assets.
The Aussie gained against the euro and though trimmed its drop versus the US dollar. But the Australian currency continued to decline against the Japanese yen. There was no obvious reason for the change of performance and the rebound may be just temporary.
The most noticeable reason for traders to be cautious was Hurricane Sandy that threatens the United States and already has taken quite a few lives. Uncertainty about the future of the eurozone (especially Greece and Spain) was not good for the traders’ mood (and the Aussie’s performance) either. Moreover, Australia’s new home sales fell 3.7 percent in September, demonstrating the third consecutive month of decline. The report said:
The persistent weakness in new home sales in 2012, driven by the detached house market, primarily reflects another factor conspicuous in its persistence this year â a dire lack of confidence towards housing.
AUD/USD was up from 1.0330 to 1.0341 as of 6:04 GMT today. EUR/AUD fell from 1.2485 to 1.2458. AUD/JPY went down from 82.42 to 82.00, falling from the intraday high of 82.87.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.
Be First to Comment