The Australian Dollar to US Dollar (AUD/USD) exchange rate was one of the few major currency pairings which failed to experience considerable movement following the publication of the US Advance Retail Sales report.
The Australian Dollar to US Dollar (AUD/USD) exchange rate began the day trending around the day’s low of 0.8063 having fallen during Australasian trading as a result of further declines in key commodity prices.
Both crude oil and copper were trending around five and a half year lows, undermining demand for commodity-driven assets like the ‘Aussie’ and pushing investors towards safe-haven currencies like the US Dollar.
Additionally, the World Bank negatively adjusted its growth estimates for the global economy for both this year and next year – refreshing concerns of a worldwide slowdown.
Even dovish interest rate remarks from a leading figure from the Federal Reserve weren’t enough to trim the AUD/USD pairing’s declines.
According to currency analyst Stuart McPhee; ‘We saw the ‘Aussie’ meeting some stiff resistance during the early Asian trade. We’ve seen the long position ratio for the AUD/USD has moved back towards 60%, which means traders are still supportive of the AUD.’
The 2.6% increase in Australian job advertisements had little impact on Australian Dollar trading.
The AUD/USD exchange rate continued trending around 0.3% lower following the release of US retail sales numbers.
The surprising -0.9% decline in sales saw the US Dollar fall to a four-week low against the Yen and pushed the ‘Greenback’ lower against several of its other most-traded currency counterparts, but the Australian Dollar’s bearish relationship with its US peer continued.
While the US data was concerning given that a -0.1% dip in sales had been envisaged, the report may not be enough to prevent the Federal Reserve from increasing borrowing costs in the first quarter of the year, so ‘Greenback’ losses were limited.
The week’s most influential Australian news, the nation’s employment report, is due out during local trading.
Australia is expected to have added 5,000 positions in December, leaving the unemployment rate unchanged at 6.3%. If the nation is shown to have added more positions than that it would give the ‘Aussie’ a boost.
However, a disappointing jobs report or a further slide in commodity prices would be Australian Dollar negative.
Investors with an interest in the AUD/USD pairing will also be looking ahead to tomorrow and the US initial jobless/continuing claims stats.
The Australian Dollar to US Dollar (AUD/USD) exchange rate was trading in the region of 0.8146 during the European session.
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