The Australian dollar leaped higher earlier on the news that the Federal Reserve was revising its economic forecast. Now, after a jump, the Aussie is down against the dollar and the pound, although it is still higher against the euro.
Aussie got a boost after the Federal Reserve released its statement yesterday. Indeed, a number of currencies surged higher against the greenback after the Fed announcement.
Things have settled down again for the Australian dollar, however. Aussie is losing ground against the US dollar, and the Down Under currency is also seeing trouble thanks to concerns about slowing growth in China and continued commodity troubles.
The Aussie is a commodity currency that relies heavily on gold for support. However, gold has been struggling recently (although it’s a little higher today) and oil continues to lose ground. With commodities struggling, and with one of its major trading partners (China) expecting slower growth, there isn’t a whole lot for the Australian economy to go on.
For now, the Aussie trades mostly lower against its major counterparts.
At 10:56 GMT AUD/USD is down to 0.7688 from the open at 0.7775. EUR/AUD is down to 1.3900 from the open at 1.3979. AUD/NZD is down to 1.0357 from the open at 1.0385. GBP/AUD is up to 1.9379 from the open at 1.9266.
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