Australia’s dollar slid against most major peers before a report that may show the nation’s trade deficit widened.
The so-called Aussie remained lower after the biggest drop in a week against its U.S. counterpart amid speculation the European Central Bank will downgrade its economic outlook at a meeting today, reducing demand for higher-yielding assets. New Zealand’s currency, known as the kiwi, slid for a second day versus the greenback after a gauge of raw materials declined.
“The Aussie is still under pressure,” said Derek Mumford, a Sydney-based director at Rochford Capital, a currency risk- management company. “The Australian economy is still very much dependent on mining and capital spending, which looks like it’s peaking.”
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.