Australian Dollar US Dollar Exchange Rate Volatile as 2017 Approaches
The Australian Dollar to US Dollar (AUD USD) exchange rate continues fluctuating widely this week as trading volumes remain thin over the holiday period.
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Australian Dollar (AUD) Sentiment Mixed as Commodity Prices Fluctuate
The Australian Dollar continues finding itself bound to the whims of the commodity market this week as rising prices allowed the ‘Aussie’ to rally early on Thursday.
Prices of iron ore, Australia’s largest export, once again began to edge close to $80 a tonne as Chinese inventories slid and demand rose for Chinese steel futures.
AUD struggled to stabilise at its best levels however and quickly tumbled as the US markets opened, mirroring its moves from earlier in the week.
US Dollar (USD) Advance Slowed by Rise in US Trade Deficit
Meanwhile the US Dollar’s overnight gains have been slightly muted by downbeat trade figures as the trade deficit unexpectedly grew from -$61.9bn to -$65.3bn in November, after it was expected to narrow slightly to -$61.6bn.
However the ‘Greenback’ did receive a small boost from the latest US employment data as jobless claims fell by around 10,000 to 265,000, helping to support the Federal Reserve’s hawkish prediction that there will be up to three rate hikes next year.
AUD USD Forecast: Credit Report May Bolster ‘Aussie’
The AUD USD exchange rate may rise later today with the release of the single piece of Australian data this week, the Private Sector Credit Report, as economists expect it to show a rise from 5.3% to 5.4% in November.
With little impactful data left this week, traders are likely to look forward to next week in order to gauge movement in the US Dollar, likely focusing on the latest Manufacturing data, which may bolster the ‘Greenback’ as it is expected to see a modest rise from 53.2 to 53.5 in December.
Current Interbank Exchange Rates
At the time of writing the AUD/USD exchange rate was trending around 0.72 and the USD/AUD exchange rate was trending around 1.38