Bumpy ride for the Aussie Dollar

Following an impressive show throughout January, The Australian Dollar lost to the US dollar last week but then again gained some ground in early trading today. The pair has been trading throughout the day between 0.9000 and 0.9100 up from 0.8980 last week, a reported 3 weeks low.  Earlier today, the AUD was trading at $US0.9041, up from Friday’s close of $US0.9028. All eyes are now on the CPI data to be released on Wednesday by the Australian Bureau of Statistics that will accordingly dictate the Central banks’ monetary policy to raise or lower interest rates.

The AUD was also significantly affected by the US President Obamas’ proposed reforms in the US banking sector which took its toll on the markets risk appetite. Concerns are also rising over speculations that China, which is Australia’s largest trading partner, may tighten the noose on its surging economy which will only mean bad news for the commodity linked Australian Dollar. Ahead of the Australia day holiday on Tuesday, all eyes are now on the CPI data that may make or break the Aussie dollar.