Australian Dollar Dips as Fundamentals Fail to Support

The Australian dollar dipped today, falling to a new multi-year low against its US counterpart. The currency declined even though macroeconomic data from Australia was positive and should have supported the currency.

Australian retail sales grew 0.4 percent in October, at the same rate as in the previous two months. The trade balance deficit shrank by A$0.91 billion to A$1.32 billion in October on a seasonally adjusted basis, more than analysts have predicted. The positive indicators were not able to help the Aussie though. Forex traders were avoiding riskier currencies ahead of today’s monetary policy decision of the European Central Bank.

AUD/USD tumbled from 0.8402 to 0.8375 as of 11:50 GMT today, and its daily low of 0.8355 was the weakest rate since July 2010. AUD/JPY dropped from 100.66 to 100.43.

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