Australian Dollar to US Dollar (AUD/USD) Exchange Rate Forecast to Soften on US GDP

  • Posted on

One Australian Dollar (AUD)

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.

Australian Dollar Exchange Rate Declines on Stronger USD

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.

US Dollar (USD) Exchange Rate Rallies on GDP

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.’

Australian Dollar to US Dollar (AUD/USD) Exchange Rate Forecast to Soften

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.

« Previous Story

Australian Dollar to US Dollar (AUD/USD) Exchange Rate Edges Higher on US Data

Next Story »

Australian Dollar to US Dollar Exchange Rate Today: AUD/USD Surges 0.7%

Disclaimer: 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. 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. 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.