More pressure for Australian dollar after rollercoaster 24 hours
The Australian dollar came under renewed pressure on Friday after a relatively stable week during which it settled into a new comfort zone between US86.50¢ and US88.50¢.
Late in the local session, the Aussie was trading at US87.71¢, compared with US87.56¢ the previous day and US86.71¢ at the start of the week.
However, the local unit rode a rollercoaster Thursday night, touching a two-week high of US88.98¢ in overseas markets before crashing back down to US87.65¢ before the local opening.
“If you wanted to sum up the last 24 hours, it’s been purely risk-off,” he said. “And there’s strong correlation between movements in volatility and movements in the Aussie dollar.”
He said aside from speculation around monetary tightening in the US, the parlous state of the eurozone is again weighing on currency markets.
Economists will be tuned in to European Central Bank president Mario Draghi when he address the media following the International Monetary Fund’s annual meeting in Washington at the weekend.
Global jitters and corresponding volatility will continue to dictate the Australian dollar’s movements next week, although a few private sector indicators will provide traders with further insights to the Australian economy. The Aussie dipped briefly on Friday on news of some easing of mortgage lending.
Source: smh- More pressure for Australian dollar after rollercoaster 24 hours
