Created
: 2024.12.02
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
AUD/USD softens to near 0.6500 ahead of Australian Retail Sales data
World FX news
Breaking news
AUD/USD softens to near 0.6500 ahead of Australian Retail Sales data
New
2024.12.02 08:06
2024.12.02 08:06
2024.12.02 08:06
- AUD/USD attracts some sellers to around 0.6510 in Monday's early Asian session, down 0.21% on the day.
- Trump tariff threats and the geopolitical risks weigh on the Aussie, but hawkish RBA bets might cap its downside.
- The Australian Retail Sales and the USI SM Manufacturing PMI will be the highlights on Monday.
The AUD/USD pair weakens to near 0.6510 despite the renewed US Dollar demand during the early Asian session on Monday. Investors will keep an eye on the Australian Retail Sales and the USISM Manufacturing Purchasing Managers' Index (PMI), which is due later on Monday.
The US President-elect Donald Trump flagged his intention to impose a 25% tariff on all products from Mexico and Canada and an additional 10% on goods from China, exerting some selling pressure on the China-proxy Australian Dollar (AUD) as China is the largest trading partner to Australia. Furthermore, heightened geopolitical tension and economic uncertainty could benefit the US Dollar's safe-haven status and act as a headwind for AUD/USD.
On the other hand, the hawkish remarks from the Reserve Bank of Australia (RBA) might help limit the AUD's losses. The RBA Governor Michele Bullock said last week that "underlying inflation is still too high to be considering lowering the cash rate target in the near term."
On the USD's front, the ISM PMI will take center stage later in the day. Manufacturing PMI is expected to improve to 47.5 in November from 46.5 in October. In case of the stronger-than-expected outcome, this could lift the Greenback against the Aussie.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment - whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) - is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia's largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia's largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Last updated
: 2024.12.02
Related articles
GBP/USD Price Forecast: Slips below 1.2700 amid buoyant US Dollar
2 minutes agoEUR/JPY Price Prediction: Reaches oversold levels as downtrend extends
21 minutes agoAUD/USD Price Forecast: Gaps open and falls towards floor of range
55 minutes agoUSD/JPY Price Prediction: Pulls back after breaking out of price pattern
2024.12.02 22:36EUR/USD falls on French political risk and Trump's defence of the Dollar
2024.12.02 22:00US Dollar rallies on Trump tariff threats against BRICS, French political turmoil
2024.12.02 21:53
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
GBP/USD Price Forecast: Slips below 1.2700 amid buoyant US Dollar
The Pound Sterling tumbled over 0.50% against the Greenback on Monday, as the latter recovered from last week's losses, remaining bid on Monday.
New
2024.12.02 23:59EUR/JPY Price Prediction: Reaches oversold levels as downtrend extends
EUR/JPY extends its decline on Monday but reaches oversold levels.
New
2024.12.02 23:40AUD/USD Price Forecast: Gaps open and falls towards floor of range
AUD/USD is falling within a range encompassed by the green (ceiling) and red (floor) dashed lines on the chart below.
New
2024.12.02 23:06USD/JPY Price Prediction: Pulls back after breaking out of price pattern
USD/JPY pulls back after breaking out of a bearish Broadening Formation (BF) pattern and pulls back to the 50-day Simple Moving Average (SMA).
New
2024.12.02 22:36Gold pulls back after Trump defends the Dollar and threatens BRICS
Gold (XAU/USD) falls and trades in the $2,630s on Monday due to a stronger US Dollar (USD).
New
2024.12.02 22:06EUR/USD falls on French political risk and Trump's defence of the Dollar
EUR/USD is trading over half a percent lower on Monday, with a single Euro (EUR) buying about 1.0500 US Dollars (USD) as New York awakes to the sound of alarm clocks and scent of coffee.
New
2024.12.02 22:00US Dollar rallies on Trump tariff threats against BRICS, French political turmoil
The US Dollar (USD) gains on Monday, paring back Friday's losses, driven by Donald Trump's promise to impose tariffs on BRICS countries if they stop using the USD and amid increasing French political turmoil, which is weighing on the Euro (EUR).
New
2024.12.02 21:53Crude Oil trades stuck in tight range ahead of crucial OPEC+ meeting
Crude Oil is still trading in a tight range on Monday, similar to levels seen last week, ahead of the most crucial OPEC+ meeting ahead of 2025 to be held on Thursday. Before the gathering, Iranian official Afshin Javan threw the cat among the pigeons by
New
2024.12.02 20:35Silver price today: Silver falls, according to FXStreet data
Most recent article: Silver price today: Silver falls, according to FXStreet data Silver prices (XAG/USD) fell on Monday, according to FXStreet data.
New
2024.12.02 18:30Pound Sterling loses 1.2700 level against US Dollar after Trump defends USD dominance
The Pound Sterling (GBP) pulls back below the 1.2700 mark on Monday after more invective from President-elect Donald Trump bolsters the US Dollar (USD).
New
2024.12.02 18:17Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
