Further pressure expected for Australian dollar

22 February, 2016

The Australian dollar is trading higher today even after Reserve Bank of Australia board member John Edwards mentioned he would be comfortable with the local currency trading substantially lower.В Mr Edwards told the wall street В journal that he would like to see the Australian dollar trading at around US65c which is well below its current levels although he doesn’t think it will fall that far anytime soon.В His remarks echo many other analysts who see the usual correlation between the Iron ore price and the Australian dollar breaking apart which in itself should see the currency lower at this stage.В Historically the price of Australia’s biggest commodity and the Australian dollar have fallen in tandem with each other.В “It does look like the Australian dollar has found a base, and I guess I would say I still think it is a bit too high,” Mr Edwards said.В В “If it was driven entirely by commodity prices, it certainly should be lower,” he also noted.В Also pressuring the Aussie dollar today is the fall in oil prices overnight after remarks by Saudi foreign minister Adel al-Jubeir who said that “supply and demand by market forces” would determine the oil price.В В The comments seemed to have all but finished the apparent deal between Saudi Arabia and Russia to cut output and freeze the oil priceВ Oil prices eased overnight which put pressure on commodities and commodity currencies, such as the Australian dollar, following comments from Saudi Arabia that all seemingly dashed hopes of a deal to strike a freeze in production to January levels.


Source link  
More loses expected for pound

The British pound continued its downtrend today before recovering slightly...

Analysts divided over Aussie dollar

The Australian dollar is holding steady today with analysts deeply divided over the direction of the currency as the year unfolds. At 8.31pm (GMT) the Aussie dollar was trading at US76.81c virtually unchanged from yesterday’s trading...

Analysts divided over oil price

The gold price remained under pressure today continuing its downward spiral as investors await Wednesday’s interest rate decision and monetary statement from the US Federal Reserve...


Oil down on doubts over deal

The oil price is down over 3 percent today as OPEC's members struggled to agree on a deal to cut production in order to boost the price...

Gold down for 5th straight day

The gold price continued to fall today, racking up its 5th day off losses as fears subsided over the fate of the European banking system with Deutsche Bank allegedly close to making a deal with the US government.

FIBO Group: consensus won't be archived

Since the beginning of this week representatives of oil world has been discussing hot issues concerning the field of oil production. An extraordinary meeting of the oil companies is held in Algeria on 26,27 and 28 of September 2016.


Gold up awaiting presidential debate

The gold price continued to rally today, racking up its 6th straight day of gains ahead of tonight’s first presidential debate between Hillary Clinton and Donald Trump who at the moment are neck and neck in the polls...

Wild ride expected for gold

The gold price is on the comeback trail today after a round of economic data out of America sent the US dollar lower against major currencies...

US dollar the currency to buy

The Euro has gained some ground against the US dollar today but some analysts say it may be short lived, and as we move forward, the American currency is the one to own...

  


Share: