The Australian Dollar to US Dollar (AUD/USD) exchange rate dived by around -0.9% during Thursday’s European session.
Market sentiment dampened considerably following news that the Shanghai Composite Index dived by over 7.0% at the close of Thursday’s Asian session. The turmoil in China’s equity markets also caused oil prices to crash to a fresh 12-year low which also weighed heavily on trader risk-appetite. As a commodity-correlated, high-yielding asset, the Australian Dollar dived versus its major peers. Adding to the ‘Aussie’ (AUD) depreciation was less-than-ideal domestic data. November’s Building Approvals unexpectedly slumped by -8.4% on the year despite the median market forecast 3.9% growth. A narrower-than-expected Trade Balance in November had minimal impact with market sentiment dominating trade.
In response to the less-than-ideal building approvals data, J.P. Morgan economist Tom Kennedy stated; ‘While we had expected the number of high-density approvals to move lower into year-end on the back of tighter bank lending standards and deceleration in dwelling price growth, the magnitude of today’s fall was significantly larger than we, or the market, had projected.’
The Australian Dollar to US Dollar (AUD/USD) exchange rate was trending in the region of 0.7017 during Thursday’s European session.
Given that trader risk-aversion strategies has seen heightened demand for safe-haven assets, the US Dollar advanced versus many of its peers during Thursday’s European session. This is despite less-than-ideal domestic data which showed Continuing Claims failed to meet with expectations in the week ending December 26th, and Initial Jobless Claims missed estimates in the week ending January 2nd.
In response to the disappointing labour market figures, Jeffry Bartash, reporting for MarketWatch, stated; ‘An unusually high number of Americans these days have been out of work for six months or longer, and many part-timers still can’t find a full-time job despite a rapid increase in hiring over the past several years. Low claims might also be a sign of a less-hospitable labour market that offers fewer opportunities to workers now than it did in the past.’
The Australian Dollar to US Dollar (AUD/USD) exchange rate dropped to a low of 0.6977 during Thursday’s European session.
During the Australasian session the Australian Dollar to US Dollar (AUD/USD) exchange rate is likely to see volatility in response to December’s Australian Performance of Construction Index. Additional volatility is likely with the publication of Australian Retail Sales for November and Foreign Reserves in December. For those invested in the US Dollar, Friday’s North American session will likely see ‘Greenback’ (USD) movement following the publication of December’s Change in Non-Farm Payrolls and Unemployment Rate.
The Australian Dollar to US Dollar (AUD/USD) exchange rate reached a high of 0.7086 during Thursday’s European session.
Disclaimer: Currency-Converter.com.au and its data provider, TorFX, make no claims regarding the validity or exactness of the information provided in on this site and will not be held liable for any use, interpretation, or other implementation of the information provided. Currency-converter.com.au make no warranties, express or implied, as to results to be obtained from use of such information, and make no express or implied warranties of condition, quality, performance, merchantability or fitness for a particular purpose or use. Currency-converter.com.au shall not have any liability for the accuracy of the information contained in the services provided or ommissions there in which are made available on a free, as-is basis. None of the aforementioned parties shall be liable for any third party claims or losses of any nature, including, but not limited to, lost profits, punitive, consequential, special, incidental, indirect or similar damages even if advised of the possibility of such damages. Rates offered are interbank rates and may not be the same as offered by your financial institution, and do not include commissions. Rates shown on this site will vary from those provided by TorFX or other providers linked to from this site.