AUD/USD Drops Below 0.8240 as U.S. Dollar Advances

Australia’s dollar weakened for a ninth day and New Zealand’s declined for a third as a slide in commodity prices damped the outlook for nations that rely on sales on raw materials.

The U.S. currency rose versus all except three of its 16 major peers as signs the economy is growing boost speculation the Federal Reserve will remove its pledge to keep interest rates low for a “considerable time.” The Aussie extended its daily losing streak to the longest since being freely floated in 1983 as a gauge of business sentiment fell to the lowest since last year’s election. The South Korean won strengthened from a 15-month low.

“The Aussie is leading losses in commodity currencies with oil declining as a slowdown in global economy reduces demand,” said Junichi Ishikawa, an analyst at IG Markets in Tokyo. “Gains in the greenback against its Australian peer is spreading to the dollar-yen cross rate as well.”

Bloomberg

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.