After moving above the US80¢ earlier, the Australian dollar is struggling. Thanks to disappointing employment data and a rate cut earlier this week, the Aussie is feeling a little weak against some of its counterparts.
Earlier this week, the Reserve Bank of Australia cut the cash rate to 2 per cent. There have been concerns about the Australian economy since gold prices have been low and since growth is slowing in China. The Aussie relies heavily on gold prices; gold is a major commodity related to the Down Under currency. On top of that, one of Australia’s biggest trading partners is China. As economic growth slows in China, demand for Australian goods will likely slow.
With all of this, the RBA thought it prudent to cut the cash rate in the hopes of stimulating the economy. More disappointing news came in the form of employment data. The unemployment rate rose by 0.1 per cent in March, up to 6.2 per cent.
Originally, many traders ignored the data, providing the Aussie with strength. Now, though, things are changing a bit and the Australian dollar is heading lower against some currencies.
At 11:19 GMT AUD/USD is down to 0.7943 from the open at 0.7969. AUD/NZD is up to 1.0645 from the open at 1.0627. AUD/JPY is down to 94.6270 from the open at 95.1850.
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