Australian dollar is heading lower today, dropping as commodities continue to struggle. With the Federal Reserve on the verge of pulling back its stimulus efforts, and concerns about global growth rising to the top, Aussie is having trouble today.
Aussie is near a two-year low today, thanks in large part to the recent commodity slide. Gold prices and oil prices are lower today, and commodities have been struggling for weeks now. Gold prices are especially damaging to the Australian dollar, since gold is the resource commonly linked to the Down Under currency.
Yesterday, gold prices moved above $1,400 an ounce, but they are lower today, moving back below that psychologically important mark. Also not helping the situation is the prospect of dollar strength as the Federal Reserve considers ending its asset purchase program.
Australian dollar is also floundering on global economic slowdown concerns. Chinese data hasn’t been what’s expected in the last couple of months, and as a major trading partner with Australia, China has a great deal of influence on the Aussie.
At 14:28 GMT AUD/USD is down to 0.9580 from the open at 0.9662. EUR/AUD is up t 1.3538 from the open at 1.3504. GBP/AUD is also higher, moving up to 1.5830 from the open at 1.5762.
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Aussie Drops as Commodities Continue to Struggle
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