The Australian dollar fell in the Asian market on Tuesday against a basket of global currencies, deepening its losses for the fourth day in a row against its American counterpart, recording the lowest level in five weeks, due to investors’ aversion to risk.
This is in addition to the release of negative data in Sydney, which showed a sudden decline in Australian consumer confidence during this January, awaiting important data on the Chinese economy, Australia's largest trading partner.
Price view
Australian dollar exchange rate today
The Australian dollar fell against its American counterpart by 0.75% to (0.6610), the lowest since last December 13, from today’s opening price of (0.6660), and recorded the highest level at (0.6663).
On Monday, the Australian dollar lost 0.4% against the US dollar, the third daily loss in a row, as there was renewed activity in purchases of the US currency as the best available investment.
Risk aversion
In light of the current recovery in yields on US Treasury bonds, coinciding with the escalation of geopolitical tensions in the Middle East and Red Sea region, investors are reluctant to buy high-risk assets.
Commonwealth Bank foreign exchange expert Carol Kong said: The current weak risk sentiment in the markets due to US yields has affected the AUD/USD pair.
Weak data
Data released today in Sydney showed that Australian consumer confidence fell by 1.3% in January, worse than market expectations for a 0.5% increase, and confidence recorded an increase of 2.7% in December.
The decline in consumer confidence in Australia may be a sign of weak economic activities in the country, awaiting more data indicating this economic slowdown, which may force the Reserve Bank of Australia to ease monetary policy and lower interest rates as soon as possible this year.
Tomorrow, Wednesday, investors are awaiting the release of very important data in Beijing, on gross domestic product, retail sales, and industrial production, which shows the extent of the development of economic activities in China, the largest trading partner of the Australian economy.
Artistic look
The Australian dollar breaks support - Analysis - 01-16-2024
