The Australian dollar fell 0.7 percent to $0.9377. The Aussie pulled further away from an eight-month peak of $0.9505 set on Tuesday, coming under pressure after Reserve Bank of Australia Governor Glenn Stevens warned investors they were underestimating the risk of a significant fall in the Australian dollar.
A weak reading on Australian retail sales also added to the already soft tone of the Aussie dollar, which had retreated on Wednesday on profit-taking in the wake of disappointing Australian trade data.
The Aussie’s drop below $0.9400 triggered stop-loss selling, said Jeffrey Halley, FX trader for Saxo Capital Markets in Singapore. “Basically, Governor Stevens timed his talking down of the Australian dollar perfectly to coincide with a soft market,” Halley said.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015