As per the recent update the Australian dollar has depreciated to fresh multi-year lows against the greenback which was falling on Friday as a result of Chinese yuan hitting the decade low. Since May 2008 this fall of the Chinese yuan was the weakest till now. This has an inverse effect on the investors leading to sharply lower the currencies and sending the Asian stocks. There is more than 1% fall in the US S&P 500 futures. As a result of fall in Chinese yuan, there is a chance of upcoming risks in the Asian region. This fall in Chinese yuan has reached to its lower level since May 2008. There is a fluctuation seen USD/CNY pair. In January last year the exchange rate was as high as 6.9603 which has gone up and reached 6.9642 in early trade on Friday. As a result of the People?s Bank of China (PBoC) is planning to set a mid point for daily trading range at 6.9510 in order to prevent a further decline in the currency.
The current exchange rate of AUD/USD currency pair is 0.7028?
The AUD/USD currently sits at 0.7028, cutting below previous support at .7040 in order to trade at the lowest level since February 2016. Till now the lowest support reported for the session is .7024. The currency being highly liquid as compared to the many other peer currency and its close economic ties with other emerging markets in Asia, the Aussie?s movement is the reflection of shifting sentiments towards Chinese economy.
At 4pm Sydney time, the scoreboard are as follows:
The currency pair AUD/USD shows an exchange rate of 0.7028 with a fall of -0.0051 points equivalent to fall of -0.72%. The currency pair AUD/JPY shows an exchange rate fall of -0.31%. The currency pair AUD/CNH shows an exchange rate of 4.9024 with a fall of -0.0215 points equivalent to fall of -0.44%.The currency pair AUD/EUR shows an exchange rate of 0.6185 with a fall of -0.0037 points equivalent to fall of -0.59%.The currency pair AUD/GBP shows an exchange rate of 0.5484 with a fall of -0.0038 points equivalent to fall of -0.69%.The currency pair AUD/USD shows an exchange rate of 1.0856 with a rise of 0.001 points equivalent to rise of 0.09%.
The probable reasons of the Australian dollar bearish are neutral RBA, global and political uncertainties and the increasing US- Australia yield spread. The other reason of Australian dollar tumbling down is that the central bank is keeping is policy rate on hold. This has resulted in further widening of the AUD/US differentials. The performance of the AUD is directly proportional to risk on sentiment.
There is a fall in the unemployment by 5% in the month of September which is the level which RBA was targeting based on its monetary policy statements. The AUD currency exchange rate also appears to be at its lowest within a period of 10 years.
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