Global Themes

AUD

Aussie hits 11-month lows as strong US dollar crushes opposition

The AUDUSD fell to the lowest level in 11 months overnight as a resurgent US dollar continued to climb higher.

The US dollar, as measured by the US dollar index, hit five-month highs overnight as markets reacted to news the US government would exit the Iranian nuclear deal.

The US, along with other key countries, had agreed to ease economic sanctions in 2015.

Plunge

The AUDUSD plunged 0.8% as the market fell to the lowest level since 5 June 2017.

Last night’s Federal budget had little impact.

The AUD was weaker in all other major markets.

The largest losses were against the Swiss franc with the market reversing from key three-month highs. The AUDCHF fell 0.9%.

The AUDEUR fell 0.4% while the AUDGBP fell 0.8%.

RBNZ in focus

The AUDNZD fell 0.1% ahead of tomorrow’s key meeting of the Reserve Bank of New Zealand.

Tomorrow’s RBNZ decision is the first with new governor Adrian Orr.

Later tomorrow, US inflation figures will be the major release. A stronger number could pressure the AUD.

Deliver the Daily Currency Market Analysis to my Inbox

Published five days a week, this newsletter provides day-to-day trends and activities affecting the market in easy-to-understand snapshots