The Australian Dollar fell to a monthly low against the US Dollar in early trading but managed to recover some of those losses as buyers of the currency emerged despite renewed weakness in commodity prices and continuing concern over the health of the global economy.
Declines in Asian stocks caused investors to seek shelter in safe-haven government bonds which in turn caused Australian yields to decline. The ‘Aussie’ weakened by 0.4% against the US Dollar as a result, its lowest level since March 12th.
The Aussie remains on a weak footing following the release of China’s disappointing growth data at the start of the week. China is Australia’s biggest single biggest export market and any weakness seen in the world’s second largest economy often has a negative impact on the Australian currency.
This week has also seen a rout in commodity prices with gold prices plummeting to historic lows and weakening in the price of metals and oil. The impact of which has affected the Australian economy and other commodity producing economies such as South Africa.
“The Aussie has really struggled to hold on to any gains this week. Aussie/yen is seeing a bit of selling as well and that doesn’t help,” said Michael Turner, strategist at RBC in Sydney.
The weak global economic picture and growing risk aversion also took a toll on the New Zealand Dollar with the ‘Kiwi’ falling from a 20-month high against the US Dollar. The currency also weakened against the Euro.
Current AUD and NZD Exchange Rates
The Australian Dollar to Euro exchange rate is trading at 0.7909
The Australian Dollar to US Dollar (AUD/USD) exchange rate is trading at 1.0322
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is trading at 0.6768
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is trading at 1.2206
The New Zealand Dollar to Euro (NZD/EUR) exchange rate is trading at 0.6479
The New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate is trading at 0.5544
The New Zealand Dollar to US Dollar (NZD/USD) exchange rate is trading at 0.8456
The New Zealand Dollar to Australian Dollar (NZD/AUD) exchange rate is trading at 0.8192
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