Aussie falls with softer Gold and strong Greenback
The Aussie appears to be facing stiff upward resistance today as it fell badly today, primarily on account of a softer gold market, and buying in the US Dollar and the Euro. During the Asian currency market session, the Australian Dollar had fallen to the .8924 level, after having made a weekly high of .8992 only yesterday. A stronger US dollar along with sentiment hinting at slower interest rate hikes in the coming year, were primarily responsible for weakening in the AUD.
Overall sentiment improved for the US Dollar as the Federal Government is said to be in discussions with the lending arm of auto major General Motors, for an additional aid package. This leads some experts to believe that risk aversion from non-major currencies could be lending support to the AUD, adding to today’s Aussie woes.
The fall in the Aussie comes on the back of a small rise earlier today itself, when a 20% price increase for coal in Australia helped the local currency up a bit. However, the charging Wall Street bull did not allow the Aussie to hold on to its gains for long.
