Australian Dollar Posts Weekly Drop on Stocks
The Australian dollar had one of the weakest performs in the past months this week as stocks declined worldwide, declining attractiveness for riskier assets as the opportunities available in the Australian
Currencies in the South Pacific region had one of the worst performances in around two months this week as a shift in risk levels set the price of stocks and commodities down specially towards the end of the week, providing support for the U.S. dollar and the Japanese yen to post the sharpest gains versus the Aussie dollar, as investors purchased Treasuries in the North American nation to protect their portfolio for eventual turbulence towards the end of the year in trading markets. Speculations indicating that gains in stocks would be beyond companies’ profit capacity were the main reason for a shift in risk sentiment that moved markets down the last days impacting specially currencies like the Aussie and the Canadian dollar.
A number of analysts affirm that after a long winning streak that set the Australian dollar to be the second best performer in currency markets this year may be cooling down, as the strong risk appetite that appeared when the world economy surged from the global slump is tending to stabilize itself, bringing the Aussie to a less attractive performance towards the end of the year.
AUD/USD closed the week at 0.9142 from an opening price of 0.9335. AUD/JPY closed at 81.21, a significant weekly drop from 83.48.
If you want to comment on the Australian dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
Earlier News About the Australian Dollar:
- Aussie Dollar Extends Record High on Jobs Data (2009-11-12)
- Australian Dollar Remains Bullish on China Growth (2009-11-11)
- Australian Dollar Trades Near 2009 Record High (2009-10-19)
- Will Australia Raise Interest Rates? (2009-10-17)
- Australian Dollar Reaches 8-Week High vs. Yen (2009-10-09)
November 24th, 2009 at 2:45 am
May I affirm whether the AUD will be cooling down and is there possibilities of rising next year? Thank you..
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Andrei Moraru Reply:
November 24th, 2009 at 9:47 am
The AUD should be performing well against all currencies. It has a high interest rate, while the economical situation in Australia isn’t as bad as in many other developed countries. The only problem AUD I can see in the future is some rapid U.S. dollar appreciation.
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