The Australian Dollar to US Dollar (AUD/USD) exchange rate advanced by around 0.30% on Monday afternoon.
Although low oil prices has seen dampened risk sentiment and higher demand for safe-haven assets, the Australian Dollar strengthened against many of its peers. This can be attributed to higher demand for gold.
The US Dollar, meanwhile, is generally trending lower versus its major peers thanks to a lack of influential domestic data to provoke changes. The solitary US publication printed poorly, however, which compounded the ‘Greenback’ (USD) downtrend.
The Australian Dollar to US Dollar (AUD/USD) exchange rate is currently trending in the region of 0.7929.
With oil prices continuing to show signs of declination amid a global supply glut, demand for higher-yielding assets cooled significantly. However, the desire for safe-haven assets has seen gold prices gain which is ‘Aussie’ (AUD) supportive.
‘Silver is tied to gold, and they move with trust,’ David Rosenberg, the Toronto-based chief economist at Gluskin Sheff & Associates, which oversees C$8 billion ($6.4 billion), said. ‘There’s an increasing number of global investors who are starting to lose trust in the world’s central banks.’
The Australian Dollar to US Dollar (AUD/USD) exchange rate has fallen to a low today of 0.7869.
After the solitary US data publication printed poorly on Monday, the US Dollar softened versus nearly all of its major peers. The Dallas Federal Reserve Manufacturing Activity Index was forecast to tick lower from 4.1 to 3.0, but the actual result softened to -4.4 in January.
Compounding the US Dollar declination is trader caution ahead of key data publications on Tuesday. For those invested in the ‘Greenback’, Durable Goods Orders and Consumer Confidence will be of significance. Experts forecast that consumer confidence will rise in January thanks to low oil prices.
Although the fluctuations in the commodities market could see the ‘Aussie’ (AUD) resume its declination, the likelihood that traders will hold off from Dollar investment ahead of Tuesday’s data should see the Australian Dollar to US Dollar (AUD/USD) exchange rate hold gains for the remainder of Monday.
The Australian Dollar to US Dollar (AUD/USD) exchange rate climbed to a high today of 0.7934.
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