The Australian dollar slumped today, reaching the lowest level in a year against the US dollar, as China’s manufacturing contracted this month and the US Federal Reserve hinted that quantitative easing may be reduced.
Australian Dollar AUD
Detailed information and fundamental factors
Central Bank: Reserve Bank of Australia
Interest Rate: 2.75%
Public Debt to GDP Ratio, 2011: 26.8%
Trade Balance, 2011: $28.7 bln.
Inflation, 2011: 3.4%
Supporting Factors
Major commodity exporter
medium
High-yielding interest rates
weak
Factors of Weakness
Domestic housing bubble
The Australian dollar is the official currency of the Commonwealth of Australia. It is often called the Aussie by Forex traders. The currency was implemented in 1966 and allowed to freely float at 1983. Australia has an export-driven economy (the mining sector represents 19% of GDP), therefore the value of the Aussie depends on commodity prices. Australia has strong trading ties with Asia, particularly China, so economic growth in that region has a particularly strong impact on Australia’s currency. The Aussie is used in carry trade because of the relatively high interest rates in Australia.
Australian Dollar News Archive
AUD/USD Falls After RBA Minutes, Losses Limited
May 21st, 2013 at 9:36
Australian Dollar
The Australian dollar fell against its US peer today after the Reserve Bank of Australia released the minutes of its last policy meeting. The drop was small, however, and the currency gained against the Japanese yen at the same time.
Aussie Soft After Budget Forecast
The Australian dollar was soft today after the government forecast that economic growth will slow in the next financial year, adding reasons for the central bank to cut interest rates further.
Australian Dollar Remains Depressed
May 13th, 2013 at 13:13
Australian Dollar
The Australian dollar remained depressed at the start of this week as business confidence worsened, adding to speculations that the central bank will cut interest rates yet again.
RBA Rate Cut Makes Week Bad for Aussie
May 11th, 2013 at 17:20
Australian Dollar
This was definitely not good for the Australian dollar as the nation’s central bank unexpectedly reduced its interest rates and hinted that more rate cuts are possible.
Aussie Suffers as RBA Lowers Inflation Outlook
May 10th, 2013 at 11:24
Australian Dollar
The Australian dollar dropped today, touching the lowest level since June versus its US counterpart, as the Reserve Bank of Australia lowered its inflation outlook, reigniting talks about possible interest rate cut.
Australia Adds Jobs, Aussie Surges
May 09th, 2013 at 11:38
Australian Dollar
New Zealand was not the only country to add jobs as Australia also pleasantly surprised Forex traders with improving employment and an unexpected drop of the unemployment rate.
Aussies Sinks as RBA Surprises FX Market
May 07th, 2013 at 13:11
Australian Dollar
The Australian dollar slumped today as the Reserve Bank of Australia surprised Forex market participants by cutting its interest rates and suggesting that further rate cuts are possible.
Aussie Drops Ahead of RBA Meeting as Retail Sales Contract
May 06th, 2013 at 11:41
Australian Dollar
The Australian dollar dropped today after retail sales unpleasantly surprised Forex market participants by falling in March. The negative data spurred talks about potential interest rate cut by the Reserve Bank of Australia.
Aussie Gains as Risk Appetite Surges in Markets
May 03rd, 2013 at 15:35
Australian Dollar
Australian dollar is gaining ground today, heading higher as risk appetite surges in the markets. Even though gold is struggling a bit today, the Aussie has the upper hand against its major counterparts as investors enthusiastically cheer the latest US economic data.
