Aussie is struggling higher against the US dollar today, working to regain some of the losses due to the latest Chinese inflation report. Aussie is running into some trouble, though, as Forex traders move between risk appetite and risk aversion. Conflicting signals are the order of the day.
Australian dollar is heavily influenced by China, one of its major trading partners. The announcement that Chinese inflation was higher than expected sparked fears that leaders would tighten policy. However, if inflation isn’t quite in line with what Chinese policy makers want to see, they could still ease monetary policy, and that would continue to help the Aussie.
Additionally, Australian dollar is getting some support from higher gold prices today. Gold is on the rise again, and that is helping the Aussie, a commodity currency tied to the precious metal.
Gains by the Aussie are relatively small, though, and hard-won today. Concerns about the latest US employment figures have some backing away from what are viewed as riskier currencies. Stocks in the United States are falling today as investor confidence recedes to some degree.
At 16:09 AUD/USD is slight higher at 1.0314, up from the open at 1.0306. EUR/AUD is higher at 1.2417, up from the open at 1.2328. GBP/AUD is up to 1.4862 from the open at 1.4859. AUD/JPY is lower at 79.11, down from the open at 79.24.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.