Economy - - Nov 22,2016
The Australian dollar slips to its lowest level since June 24 in early Asian trade recorded on Monday morning.
The value of Australian dollar has decreased to five month lows, with the effect of a strengthening United States dollar in response to the policies being selected by US president elect Donald trump. Moreover, the U.S interest rate rise is also counted as a prime reason. The Australian dollar / US Dollar buys .7324, extending its drop from the day before US governmental election to 6 percent.
Today Australian dollar was trading at US$73.27c, this is the lowest rate since June 3. Since last Thursday, the drop is more than 3.5c as the Australian currency was trading at US$76.8c. According to the Ray Attrill, global co-head of foreign exchange at the National Australia Bank (NAB), proposes that a combination of higher US bond yields and dipping commodity prices are functioning in tandem to undermine the Australian dollar. NAB FX strategists have estimate the Australian dollar to drop towards 70 US cents through the year 2017, and even lower in the year 2018.
Here’s the current price of Australian dollar against some other currency:
AUD/ US Dollar (USD) 0.7324 , -0.0008, -0.11%
AUD/ Great Britain Pound (GBP) 0.5931 , 0.0009, 0.15%
AUD/ EURO (EUR) 0.6905 , -0.0012, -0.17%
AUD/ Japanese Yen (JPY) 81.25, 0.07, 0.09%
AUD/ China Yuan (Hong Kong, CNH) 5.0571, -0.0005, -0.01%
AUD/ New Zealand Dollar (NZD) 1.0470 , 0.0034, 0.33%
The Australian dollar (AUD) had plunged on market worries about the outlook of a future trade battle amid the US and China, as well as greenback strength on the back of corporate tax alterations in the US, said NAB FX Mr. Ray Attrill. He further added, “If there is a trade war that results in simply diminished cross-border trade, Australia will inevitably get caught up with that,” for example “it may mean minus demand for Australian product exports to People's Republic of China.”