The Australian dollar remains on the back foot, still suffering from Lowe’s negative comments and falling despite a lack of USD strength. Update: the US dollar is now strengthening, but it seems that the A$ is the weakest in the pack at this time, vulnerable more than others. The falling prices of copper also weighs on the Aussie.
The pair is at a fresh 4 year low under the very found number of 0.85, with 0.8481 being the new low. The long term low of 0.8066 is not that far away anymore.
RBA member Philip Lowe said that the Australian dollar has more room for falls and that a weaker Aussie could balance the high Australian wages. This pushed the pair below the previous low of 0.8540 and the move is now extended. It’s also important to note the Chinese rate cut, that could be seen as a sign of weakness in the economic giant which is Australia’s main trade partner.
Australia reported that Construction Qork Done dropped by 2.2% in Q3, worse than 1.7%, but the immediate market reaction was muted.
However, European traders are less kind to the Aussie dollar, and the sell-off resumes.
Opinion: Staying Short AUD/USD: Bearish We Stand; – Morgan Stanley.
Here is the chart showing the most recent slide after stability in the Asian session. 
Share
