AUD Weighed Down by Dropping Equities
October 7th, 2009 Posted in Aussie - Kiwi
The Australian Dollar lost some ground today after reaching a 14 month high as stocks slipped as 3rd quarter earnings reports began to be published today. AT&T’s 1.6% drop weighed down on equities and riskier assets such as the AUD and NZD. The south pacific currencies are highly correlated with movements in equities. However the AUD still remain strong following the highly unexpected interest rate increase by the Bank of Australia yesterday.
The Australian Dollar was also weighed by the expectation of rising unemployment as tomorrow’s report is likely to show unemployment rose to 6%. Overall, however, the Australian economy is improving as was evident by the release of today’s Housing Industry Association index that showed the nation’s building industry expanded in September for the first time in 18 months. The index rose 8.4 points to 50.8 from August, with a reading above 50 showing the industry is expanding.
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Tags: AUD, AUD trading
