Australian dollar is paring some of its earlier gains right now, which should be a relief to the Reserve Bank of Australia, which has been trying to encourage a weaker Aussie for the sake of economic stimulus.
Australian dollar moved higher yesterday and was higher in earlier trading. However, the Down Under currency has since pared some of its gains and is once again mostly lower against many of its counterparts.
Disappointing news for US economic data sent the Aussie higher earlier in the session. There is speculation now that the Federal Reserve will put off its planned rate hike.
Australian policymakers are trying to encourage a weaker currency in the name of economic stimulus. The Reserve Bank of Australia has been working to keep the Aussie lower since China’s economy has been slowing export demand and there are other economic concerns Down Under. The news that the Aussie is pulling back now is likely to cheer policymakers.
Lower gold prices are also helping to keep the Aussie mostly lower against its major counterparts.
At 10:31 GMT AUD/USD is lower, dropping to 0.8017 from the open at 0.8081. AUD/NZD is down to 1.0766 from the open at 1.0777. AUD/JPY is down to 96.0840 from the open at 96.2750.
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