The Australian Dollar is trading at fresh one-year lows near 0.6300, drawing closer to last year’s low at 0.6270 in a risk-averse market with traders cautious ahead of the Fed’s decision.
Investors are nearly fully pricing a 25 bps cut by the Fed later today, although the strong US data seen recently and the rising inflationary pressures are likely to force the bank to adopt a more cautious approach to rate cuts next year.
On the macroeconomic front, data released on Tuesday revealed that US Retail Sales beat expectations in November. These figures come after the upbeat business activity figures seen on Monday confirming that the US economy is growing at a solid pace in the last quarter of the year.
On the other hand, the Aussie Dollar is bleeding amid rising concerns about the sluggish recovery in China, a key partner. Recent data from the Asian country showed that consumption remains depressed with housing prices declining further.
The outlook for next year is far from cheerful, as prospects of higher tariffs on Chinese products by the next US administration will likely weigh on growth and hurt the Australian economy. This is keeping Ausie’s upside attempts limited.
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the New Zealand Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | -0.13% | -0.07% | 0.03% | 0.07% | 0.33% | 0.39% | 0.11% | |
EUR | 0.13% | 0.06% | 0.18% | 0.20% | 0.46% | 0.54% | 0.24% | |
GBP | 0.07% | -0.06% | 0.10% | 0.14% | 0.41% | 0.47% | 0.18% | |
JPY | -0.03% | -0.18% | -0.10% | 0.03% | 0.29% | 0.34% | 0.07% | |
CAD | -0.07% | -0.20% | -0.14% | -0.03% | 0.26% | 0.32% | 0.04% | |
AUD | -0.33% | -0.46% | -0.41% | -0.29% | -0.26% | 0.06% | -0.24% | |
NZD | -0.39% | -0.54% | -0.47% | -0.34% | -0.32% | -0.06% | -0.28% | |
CHF | -0.11% | -0.24% | -0.18% | -0.07% | -0.04% | 0.24% | 0.28% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
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