The Australian Dollar to US Dollar (AUD/USD) Exchange Rate softened by around -0.31% on Tuesday thanks to better-than-expected US growth outweighing some disappointing results from other US data publications.
The Australian Dollar, meanwhile, has been subject to fluctuation in the commodities market thanks to a lack of data to influence movement.
The Australian Dollar to US Dollar exchange rate is currently trending in the region of 0.8094.
As the US Dollar strengthens against nearly all of its major peers, the higher-yielding ‘Aussie’ (AUD) softened against many of its most traded rivals. Compounding the ‘Aussie’ downtrend has been sluggish movement in the commodities market, with particular reference to oil and iron ore.
Talking about iron ore, Dominic Schnider, an analyst at UBS Group AG’s wealth-management unit in Singapore, said in a Bloomberg Television interview yesterday; ‘Things really look bleak. There’s not much of support actually even in 2015. China is still going to decelerate.’
The oil market has been notoriously bearish over the past few months, and there doesn’t seem to be an end in sight as Saudi Arabia doesn’t intend to cut output, Al-Naimi said in the interview with MEES. ‘Whether it goes down to $20, $40, $50, $60, it is irrelevant,’ he was cited as saying.
‘It paints a very pessimistic picture for oil prices, and what it means for non-OPEC supply,’ Gareth Lewis-Davies, an analyst at BNP Paribas SA in London, said by phone, referring to Al-Naimi’s comments.
The Australian Dollar to US Dollar exchange rate dropped to a low today of 0.8084.
Not all of the US data publications were positive on Tuesday, but the unexpected improvement in Gross Domestic Product has caused the US Dollar to surge against nearly all of its major peers. Annualised Gross Domestic Product saw third quarter growth of 5.0%, eclipsing expectations of 4.3% and well above the previous growth of 3.9%.
‘Very strong Q3 GDP revision — but the November durables reading was certainly disappointing,’ Matt Derr, a foreign-exchange strategist in New York at Credit Suisse Group AG, said by e-mail. ‘With the GDP revision backward-looking, I would expect the market to focus more on the soft durables. Nonetheless, this shouldn’t change the broader USD direction, but add to near-term chop.’
With traders seemingly willing to invest in the US Dollar irrespective of domestic data results, the Australian Dollar to US Dollar is likely to continue trending lower. The declination will be compounded if yet more bearishness is detected in the commodities market.
The Australian Dollar to US Dollar exchange rate has advanced to a high today of 0.8144.
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