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

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes