Australian dollars

The Australian dollar has fallen to a 2.5 year low against the greenback. It also fallen heavily against most other major currencies. The lower currency, along with firmer global economic growth, has helped to boost the value of Australian services exports, particularly for tourism. Macquarie Bank estimates that a sustained 10% real Australian dollar depreciation typically boosts Australian GDP growth by a cumulative 1-1.75 percentage points (ppts) over two to three years. The AUD has fallen by slightly less than that in trade-weighted terms since late January. The Australian dollar has been in the news this week, falling to the lowest level since February 2016 against the greenback. It’s also under pressure against the major crosses, leaving the Australian dollar trade-weighted index teetering just above multi-year lows. While bad news for anyone relying on the Aussie to fund investments or travel abroad, it’s recent slide does have its benefits, as seen in the … [Read more...] about The lower Australian dollar is helping to boost the tourism sector

The Australian dollar fell to the lowest level since February 2016 on Thursday. Higher bond yields, steep declines in stocks and some commodities as well as renewed geopolitical jitters ensured the Aussie remained under pressure. Australian retail sales for August will be released today, as will US non-farm payrolls for September. The Australian dollar continues to slide, hitting fresh multi-year lows against the greenback on Thursday. Here’s the scoreboard at 7am in Sydney. AUD/USD 0.7078 , -0.0024 , -0.34% AUD/JPY 80.65 , -0.69 , -0.85% AUD/CNH 4.8799 , -0.0124 , -0.25% AUD/EUR 0.6146 , -0.004 , -0.65% AUD/GBP 0.5435 , -0.0053 , -0.97% AUD/NZD 1.0926 , 0.0028 , 0.26% AUD/CAD 0.9147 , 0.0005 , 0.05% With the exception of other commodity currencies such as the New Zealand and Canadian dollars, the Aussie was hit hard again, undermined on this occasion by not only higher US bond yields but also widespread losses in stocks and commodities. After falling over 1% on … [Read more...] about The Australian dollar sinks to new lows

The Australian dollar has been smoked, tumbling against most major crosses on Wednesday. It’s now threatening to hit fresh multi-year lows against the greenback. The catalyst behind the move was a spike in US bond yields following the release of strong US economic data. This helped propel the US dollar higher. The economic data calendar is quiet on Thursday, leaving sentiment, technicals and headlines to dictate direction. Australian trade data is out but it will take a massive surprise to move the Aussie. The Australian dollar is getting smoked, falling heavily against most major crosses on Wednesday. As such, it’s not within touching distance of falling to fresh multi-year lows against the greenback. Here’s the scoreboard at 7am in Sydney. … [Read more...] about The Australian dollar’s getting smoked

The AUD/USD has tumbled over 11% since late January, and remains near multi-year lows both against the greenback and in trade-weighted terms. Strategists at Bank of America Merrill Lynch (BAML) forecast the AUD/USD will finish 2019 at 84 cents. It says recent weakness in the Aussie is “inconsistent with key commodity prices and the terms of trade”. On the back of a less-hawkish US Federal Reserve, additional stimulus from policymakers to support the Chinese economy and firm commodity prices, UBS FX Strategists expect the Australian dollar will be trading at 82 cents against the greenback by the end of next year, representing an increase of 14% from its present levels. It’s a big contrarian call compared to the broader FX market, and one that many think is unrealistic. However, UBS is not the only forecaster predicting that the Australian dollar will be the comeback kid of currency markets next year. According to strategists at Bank of America Merrill Lynch … [Read more...] about BAML predicts the Australian dollar will be the comeback kid of currency markets next year

The Australian dollar traded mixed on Monday, failing to benefit from an improvement in investor sentiment and gains across most commodity markets during the session. The US and Canada stuck a last-minute deal on trade, helping to boost European and US stocks as well as the greenback, Mexican peso and Canadian dollar. The RBA will announce its October interest rate decision at 2.30pm AEST. No change in the cash rate is expected. Nor are any major changes expected in the post-meeting statement. Chinese markets will remain closed for National Day holidays. The Australian dollar traded mixed on Monday, failing to benefit from an improvement in investor sentiment and gains across most commodity markets during the session. Here’s the scoreboard as at 7am in Sydney. … [Read more...] about The Australian dollar remains pressured despite an improvement in investor sentiment