Australian Dollar Recovers from Initial Losses

This week’s trading started with risk aversion that has dragged commodity currencies down. Yet the Australian dollar recovered after initial losses following the rally of Chinese stocks.

Chinese regulators loosed limits on short-term margin lending for stock trades. This made the Shanghai Stock Exchange Composite Index rally more than 2%. The Aussie followed in a rally, recovering from the pressure of falling commodity prices and the risk-negative market sentiment.

AUD/USD rose from the open of 0.7594 to 0.7620 as of 10:36 GMT today after falling to 0.7568 earlier. AUD/JPY was at 85.00 following the drop from 84.69 to 84.21.

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