The Australian dollar faced further decline today in spite of some encouraging data. Results from building approvals came out 1.3%, above what was expected and the cash rate was 2%, as expected. However, the currency plunged to a six-year low as the decline in China’s factory production has significantly reduced the need for commodities. As it is largely considered as a satellite economy to China, Australia tends to feel the brunt of the strain and is doing so once more with levels against the US dollar dropping to 0.7037! Today sees the release of Australian growth data, but it is expected that results will have little overall relief for the currency until the China situation is resolved.
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