Australian Dollar US Dollar Exchange Rate Advances after Labor Day Immobilises US Economic Output

United States Dollar (USD)

The Australian Dollar made a number of gains against its currency peers during Monday’s trading session, thanks mainly to low confidence over the US’s economic prospects.

The US Dollar’s depleted state was brought about by a lack of domestic input, as well as concerns that prolonged low US interest rates may result in damage to the nation’s economy.

Australian Economic News: Australian Dollar Unsettled by Iron Ore Price Predictions

Australian Dollar exchange rate movement was broadly positive over Monday’s trading session, although the scattering of gains recorded were not indicative of overall investor sentiment towards the ‘Aussie’.

In particular, while the Australian currency did rise due to weakness in the US, domestic data was far less supportive, with the AiG services index for August showing a sizable drop from 53.9 into the contraction range at 45.

In commodities news, the cost of iron ore remained in doubt, due to Chinese demand being cut off due to operations to clear the skies for the G20 Summit in China.

Other Australian economic news was more mixed in its outcome, with the ANZ job advertisements figure for August rising out of a negative range, along with the gross company profits figure for the same month.

US Dollar Losses Stem from Low Expectations of September Fed Activity

The US Dollar was in a bad way during Monday’s trading, with notable losses being recorded against virtually all of USD’s regular peers. This is partly due to Labor Day, which has prevented any real economic activity taking place.

The lack of any real investor interest also came from the US’s economic situation, where a continuous stream of positive and negative data, as well as hawkish and dovish Fed statements have left the US Dollar in low demand and concerns about future US growth prospects high on the agenda.

In particular, Fed official Jeffrey Lacker has stated that;

‘It appears that the funds rate should be significantly higher than it is now’.

This, however, comes at a time when the chances of a Fed rate hike in September are as low as 20%, which means more investor anxiety from such a statement, instead of confidence.

Australian Dollars (AUD)

AUD, USD Exchange Rate Forecast: RBA Rate Decision and US PMI Results due Today

Australia will bring the next major data likely to move the AUD USD exchange rate pairing, when the Reserve Bank of Australia (RBA) interest rate decision is announced in the afternoon. This has been forecast to bring a rate freeze at the current 1.5%.

From the US, incoming announcements are expected to consist of declining August composite and services PMI results late at night, as well as an early pessimistically-predicted non-manufacturing PMI for August on Wednesday morning.

Current AUD, USD Exchange Rates

The Australian Dollar US Dollar (AUD USD) exchange rate was trending in the region of 0.7584 and the US Dollar Australian Dollar (USD AUD) exchange rate was trending in the region of 1.3189 today.


Oliver has developed an expert understanding of the Forex market and the main drivers behind currency movement since entering the financial sector. He writes daily articles covering the latest shifts in currency for a range of sources online, as well as providing potential forecasts of future movement. This gives his followers all the information they require to protect their international money transfers from market exposure and currency risk. - View all posts by Oliver Meredew

« Previous Story

Australian Dollar US Dollar Exchange Rate Outlook: Imminent US Payrolls Data may Devalue ‘Aussie’

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.