Australian Dollar US Dollar Exchange Rate News: AUD Demand Limited ahead of Key GDP Results
The Australian Dollar has been a poor option for trading against the US Dollar recently, owing to the potential for an imminent shock drop in Australian GDP.
If you're looking to make an international money transfer, we recommend TorFX.
The USD AUD exchange rate has risen, in spite of the latest outbursts from President-Elect Trump.
Australian Dollar News: Iron Ore Price Rise Fails to Reassure ahead of GDP Data
The Australian Dollar US Dollar exchange rate has been in low demand during trading lately, owing to high anxieties over how incoming Australian GDP data could print.
The most recent AU data has included the Q3 current account deficit reducing, as well as the Reserve Bank of Australia (RBA) leaving interest rates on hold at 1.5%.
Although the price of iron ore has climbed recently, this has failed to override the negative sentiment brought on by pessimistic GDP predictions.
US Dollar Advances, although Trump’s Chinese Diplomacy Raises Concerns
The US Dollar has advanced against the Australian Dollar recently, although this came along with losses or weak movements against the rest of the USD’s peers.
The latest US issues to flare up have concerned President-Elect Donald Trump, who has been risking diplomatic incidents with his latest interactions with China.
As well as calling the President of Taiwan, an unprecedented move given the contested status of the political entity, Trump has also criticised Chinese monetary and military policies.
Good business relations with Beijing would naturally benefit the US, but a cold response from Chinese Foreign Ministry speaker Lu Kang has raised serious questions about the viability of this path in the future. Responding to the situation, Kang said;
‘We will not speculate on what motivates President-elect Trump and his team into taking certain moves, but we will surely make ourselves clear if what they say concerns China’.
AUD USD Exchange Rate Forecast: Possible AUD Crash ahead on Decline-Forecast GDP Stats
The next Australian data to arrive will be this morning’s AiG construction index, which is expected to have risen in November from 45.9 to 50 points.
Less supportively, the Q3 GDP growth rate is forecast to have fallen on the quarter and the year, which may well drag AUD demand down regardless of any support from the construction score.
In the US, the next big news will be Thursday morning’s crude oil stocks change to the start of December, which could aid the USD if they show falling figures. These would raise global oil prices, which would in turn prove beneficial to US producers and exporters of the commodity.
Recent Interbank Exchange Rates
At the time of writing, the Australian Dollar US Dollar (AUD USD) exchange rate was trending in the region of 0.74 and the US Dollar Australian Dollar (USD AUD) exchange rate was trending in the region of 1.34.