Currency Note Worldwide

Australian dollar struggles

By Smart Currency October 3rd, 2013

Elsewhere, yesterday we saw the Australian dollar break its recent central bank-inspired rally, retreating from one-week highs against the US dollar in spite of significant US dollar weakness. The slide was triggered by a combination of two data releases showing that both the Australian trade deficit was higher than expected, and that building approvals figures had climbed by less than economists had forecast. We also saw a further increase in risk-aversion across the global market which was a further force driving down the higher-risk Australian dollar. Similarly, the situation in the United States continued to be a detrimental force on the Canadian dollar, which, with its strong trade ties with the US, is increasingly worrying for the Canadian economy. The Japanese yen continued to strengthen throughout yesterday, with nervousness in the market causing traders to buy in to the safe-haven currency. With a quiet day on the data-front today, markets will be influenced by external factors. Get in touch with your trader for a live rate.