Aussie Dollar Pauses

Since the US presidential election on Nov 8 in which Donald Trump was victorious, the Aussie has lost 3.5 per cent as the greenback jumped in line with yields on Treasury bonds.

The Aussie is down 1.5 per cent so far this month, set to post its second straight monthly loss. Over the past week, however, it has held its own against the US dollar aided by a sharp rebound in the price of iron ore and coal – Australia’s two largest exports.

“The Aussie dollar is looking like a beautiful oasis over the short term,” said Stephen Innes, senior currency trader at Oanda Australia and Asia Pacific.

“Speculative Chinese monies remain the primary driver in base metals flows as the China retail crowd stockpile everything in sight ahead of the anticipated Trump fiscal boom.”

The Business Times via Reuters

This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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