The Australian dollar backed off today after rallying yesterday. The currency gained strength from the Chinese manufacturing data, but retreated as traders wait for the policy decision of the Australian central bank.
China is the major trading partner of Australia, therefore good news from the Asian country usually helps the Aussie (as the Australian currency is nicknamed). The manufacturing data released on Monday was not completely positive strictly speaking, but helped the traders’ confidence. The reports from Japan improved the mood even more.
The Reserve Bank of Australia will announce its decision regarding interest rates today. Analysts predict no change just yet, but market participants are worried that an interest rate cut may happen as the central bank was hinting at such possibility previously.
AUD/USD fell from 0.9235 to 0.9220 and AUD/JPY went down from 92.01 to 91.84 as of 2:53 GMT today. EUR/AUD ticked up from 1.4134 to 1.4153.
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