- 14 February 2012
Aussie starts week on a bullish note
The Australian dollar was able to start off Monday's session on a positive note, following the downtrend it experienced to close out last week. The currency was able to recoup the losses it suffered against most of its main currency rivals on Friday, after positive Greek news boosted risk appetite in the marketplace. The AUD/USD peaked yesterday at 1.0776 before staging a slight downward correction. Against the Japanese yen, the Aussie gained over 60 pips before moving downward during mid-day trading.
- 08 February 2012
RBA rates decision boosts aussie
The Australian dollar saw significant gains throughout the trading day yesterday, following news that the Reserve Bank of Australia (RBA) would leave national interest rates at their current level of 4.25% for the time being. Analysts had originally forecasted the RBA to reduce interest rates to 4.00%. The move resulted in the AUD extending its recent gains against most of its main currency rivals, including the USD, EUR and JPY. The AUD/USD hit a six-month high at 1.0823 before staging a reversal, as analysts warned that the pair still had room to move up.
- 10 January 2012
Aussie sees slight gains despite risk aversion
The Australian dollar saw slight gains against the safe-haven US dollar and Japanese yen in trading yesterday. The currency, which is largely linked to commodity prices, saw mild bullish behaviour as traders sold off some short USD positions in favour of riskier currencies. That being said, the market is still extremely risk averse and currencies like the AUD may resume their recent bearish run in the near future.
- 13 February 2012
Aussie comes off recent highs
The Australian dollar saw some bearish movement to close out last week. The currency moved down against most of its major currency rivals, following negative euro-zone news that drove investors away from riskier assets. The AUD/USD closed Friday's session at 1.0671, well below the six-month high it reached earlier in the week. Against the Swiss franc, the AUD closed Friday at 0.9776, down over 100 pips from earlier in the week.
- 31 January 2012
Risk aversion causes AUD to slip against currency rivals
The Australian dollar had a particularly bearish day yesterday, after poor euro-zone news sent investors to safe-haven currencies like the US dollar and Swiss franc. The AUD/USD slipped over 100 pips throughout the European trading session, while the AUD/CHF dropped some 50 pips before staging a mild correction.
- 02 January 2012
Interest rate differentials to drive AUD
Investors continue to prefer commodity currencies despite the decline in commodity prices. Since its peak in April the Thomson Reuters/Jefferies CRB Commodity Index has declined 17.8%, while the AUD/USD has declined by only 7%. The tepid decline in the value of the AUD/USD also comes in the face of the European debt crisis and a slowing Chinese economy. Thus we may assume that investors continue to buy the AUD based on interest rate differentials and perhaps the country's AAA credit rating.