Aussie is gaining ground today, but it’s not as much about strength Down Under as it is about weakness in the United States.
Australian dollar is higher today, gaining against the US dollar and its European counterparts. The US dollar is taking a hit because of recent data that indicates that the US economy might not be growing as quickly as expected. With this in mind, there are doubts about when the Federal Reserve will decide to raise interest rates.
Aussie has been struggling recently, with China’s economic growth slowing, and with the struggle for commodities. Australian dollar relies on gold prices, which have been struggling, as well as its trading relationship with China, for support. For today, though, Aussie has the upper hand as Forex traders look to the rest of the world and try to determine what might happen next.
For the medium to long term, there might be more weakness coming for the Aussie if the situation doesn’t change for China and for commodities, since there won’t be much to support the Australian economy.
At 11:40 GMT AUD/USD is higher, moving up to 0.7943 from the open at 0.7859. AUD/NZD is also higher, moving up to 1.0334 from the open at 1.0278. AUD/JPY is gaining, heading up to 94.4350 from the open at 93.5360.
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