Forex: AUD/USD – Aussie extending losses in London trading
The Australian dollar has traded lower against the USD today, falling to a daily low so far of 0.9215 in the Asian session.
So far this year, the AUD has weakened 6.7 percent, the second-worst performance amongst the 10 developed-nation currencies.
The market awaits further moves from the Reserve Bank of Australia at its meeting next Tuesday. Expectations are for a lowering of the benchmark interest rate.
The AUD has recently been under pressure from the talk of near-term stimulus reduction in the US and perceptions of increased risk of financial woes in China.
The outlook for the Australian dollar remains firmly negative, presaging the worst quarterly performance in five years. Takuya Kawabata, an analyst at Tokyo-based Gaitame Research Institute, comments: “The prospect of Fed tapering continues to weigh on the Aussie as the U.S. dollar is bought back.”
Kawabata continues: “While expectations for the RBA easing have been pared back somewhat, the Aussie dollar will struggle to rise until we see more stability in China.”
Due out later today are the US Chicago Purchasing Managers Index and the Reuters/University of Michigan Consumer Sentiment Index.