The Australian Dollar has been in a precarious position against its economic rivals of late, with losses coming across virtually the whole board in the wake of an announcement from Prime Minister Malcolm Turnbull.
The US Dollar’s movements have been decidedly more positive, although the US has been similarly affected by econo-political developments recently.
The ‘Aussie’ has been low against its competitors of late, having lost out by -0.5% against the Chinese Yuan (AUD/CNY), -0.6% against the Pound Sterling (AUD/GBP) and the US Dollar (AUD/USD) and by -0.7% against the Euro (AUD/EUR). Against the New Zealand Dollar (AUD/NZD), however, a gain of 0.8% has been recorded.
Previously, the Australian Dollar was laid low by a pessimistic Reserve Bank of Australia (RBA) comment.
The most notable development within Australia of late has been the PM’s official announcement of the June General Election data, for July 2nd. Although all but confirmed beforehand, this actual clarification has shunted all political parties into gear for what has been a hastily contrived first test of Turnbull’s relatively untested leadership since last year’s takeover.
Adding to the political uncertainty of the impending election has been wider trade-based concern – although partner China’s April trade surplus has increased, exports and imports have all fallen.
The US Dollar has made sizable gains against a number of its rivals recently, having advanced by 0.8% against the Australian Dollar (USD/AUD) and over 1% against the New Zealand Dollar (USD/NZD), the South African Rand (USD/ZAR) and the Japanese Yen (USD/JPY).
The ‘Buck’ has been most recently affected by the Chinese economic developments of recent memory, as well as comments from Fed official Charles Evans.
While Evans did emphasise the ‘wait and see’ approach to the US interest rate, he also estimated growth of 2.5% for the US economy in 2016.
Today holds a pair of potentially impactful domestic developments.
In the first instance will be Australia’s ANZ Roy Morgan weekly consumer confidence index for early May, while later on in the afternoon will be a Fed speech from member William Dudley.
The Australian Dollar to US Dollar (AUD/USD) exchange rate has been trending in the region of 0.7312 and the US Dollar to Australian Dollar (USD/AUD) exchange rate has been trending in the region of 1.3678 recently.
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