Aussie Dollar Outlook Against Other Major Currencies
While the Australian dollar (AUD) may be the fifth most commonly traded currency in the world, it certainly hasn’t been performing well over the last few months.During trading on Thursday, the Australian dollar held steady against the U.S. dollar (USD) at a near two-month low at 0.9277.
This came after the Reserve Bank of Australia cut growth and inflation forecasts and reiterated that interest rates will remain on hold.
Furthermore, on Thursday, the Australian Bureau of Statistics released poor employment figures which negatively impacted the currency even further.
Looking ahead, it doesn’t seem that the Aussie dollar will recover any time soon since the USD is strengthening with an improving economy in the U.S.
This means that the U.S. Federal Reserve will continue to cut back stimulus levels quicker than expected and investors are now focusing on when the interest rate hikes will occur.
On the upside though is that data on retail sales in Australia was stronger than expected, growing 0.6% in month to June while the securities inflation slowed to 2.6% on year to July.
The AUD is currently trading at 1.8098 against the British pound (GBP), 0.29% lower and also at 1.4350 against the Euro (EUR), which is also 0.19% lower.
Against the New Zealand dollar, the AUD is trading 0.04% higher at 1.0942.
The current resistance level for the AUD/ USD is very strong at 0.9425 and it seems that for now it is likely to hold here in the near term.