Growth Concern Sees AUD/USD Down Near 1.03

Australia’s dollar reached a one- month low as stocks and commodity prices retreated, reducing investor appetite for riskier assets.

Australia’s government bonds rose, sending the 10-year yield to the lowest in more than four months. The Australian and New Zealand dollars held declines against the yen from yesterday after the International Monetary Fund cut its global growth forecast, citing a lagging recovery in Europe.

“The Aussie and kiwi are hit as stocks and commodity prices declined,” said Takuya Kawabata, an analyst at Research Institute Ltd., a unit of Japan’s largest currency margin company. “While there’s no sense of urgency from the RBA to cut rates at the moment, a big drop in consumer prices or lackluster global growth could boost easing expectations.”


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.