Aussie is heading lower against the US dollar after the latest data out of China disappoints. However, as European currencies continue to weaken, Australian dollar is finding some success against them.
Aussie is trading mixed today against its major counterparts. Against the US dollar, the Australian dollar is heading lower. Lower commodity prices, as well as risk aversion, have many Forex traders favoring the greenback. Aussie is also down against the Japanese yen as risk appetite fades.
However, against European currencies, the Aussie is doing well. Concerns about what’s next in the eurozone are weighing on the euro, and that is helping the Aussie. Germany’s latest PMI disappointed, prompting talk of an ECB rate cut, and there are expectations of more quantitative easing from the United Kingdom. With those concerns, European currencies are being undermined.
For now, though, Australian dollar is unlikely to make any truly bold moves. Australia’s economy is connected to China’s and the Chinese economy has been showing slowed growth. Additionally, struggling commodities are likely to hold the Australian dollar back as well.
At 17:19 GMT AUD/USD is down to 1.0256 from the open at 1.0274. AUD/JPY is down to 101.8515 from the open at 101.9550. EUR/AUD is down to 1.2678 from the open at 1.2718. GBP/AUD is down to 1.4878 from the open at 1.4884.
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