The Australian dollar is sitting just above the 72 cent level in early Asian trade on Friday, having briefly fallen to as low as .7198 in European trade, the weakest level since May 31 this year.
As the daily chart below reveals, the AUD/USD has come under renewed selling pressure in the second half of December, undermined by higher US bond yields and renewed price weakness in the nation’s key commodity exports.
It’s now fallen 4.2% from the highs stuck on December 14, extending the decline since November 8 — the day of the US presidential election — to 7.3%.
While the Aussie continued to weaken against the US dollar overnight, it traded mixed against the crosses, suggesting that year-end position adjustments from traders may be influencing movements in currency markets right now.
- AUD/USD 0.7211 , -0.0024 , -0.33%
- AUD/JPY 84.77 , -0.27 , -0.32%
- AUD/CNH 5.0109 , -0.002 , -0.04%
- AUD/EUR 0.6910 , -0.0029 , -0.42%
- AUD/GBP 0.5868 , 0.0013 , 0.22%
- AUD/NZD 1.0434 , -0.005 , -0.48%
With Christmas now just two days away and another quiet economic data calendar in Asia, it looks set to be another quiet session for currency markets in Asia as trading volumes, and market interest, dry up.
Later in the session markets will receive revised Q3 GDP figures from the UK along with new home sales and revised building approvals and consumer sentiment figures from the US.
None are likely to create significant volatility in the Australian dollar.
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