Australian Dollar Soft Despite Positive Reports

The Australian dollar fell today despite positive macroeconomic data. Minutes of a monetary policy meeting released by the Reserve Bank of Australia yesterday were somewhat dovish, adding to the pressure on the currency.

The six month annualised growth rate in the Westpac-Melbourne Institute Leading Index rose from –0.02% in September to +0.44% in October. Construction work done climbed by 15.7% in September from the previous three months instead of falling by 2.1% as was predicted.

The RBA released minutes of its November meeting yesterday. Policy makers were concerned that, while employment was rising, “wage growth had remained low.” Such comments suggested that the central bank will not consider raising interest rates in the foreseeable future.

AUD/USD traded at 0.7570 as of 13:44 GMT today, near the opening level of 0.7576. AUD/JPY dropped from 85.18 to 84.83. AUD/CHF declined from 0.7509 to 0.7483.

If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *