Australian Dollar Recovers, New Zealand’s Dollar Teeters in Early Morning Trade

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Australian Dollar Recovers, New Zealand’s Dollar Teeters in Early Morning TradeThe Australian dollar appeared to recover on Monday morning after declining last week due to a weak labor market report and a not-so-good economic data from the Reserve Bank of Australia. The Aussie traded at US 92.76 cents at 0700 AEST, compared to US 92.58 cents at the close of trading in Friday.

The Australian dollar fell to its lowest level in two months after the unemployment rate startlingly increased to 6.4 percent while the central bank issued a downbeat quarterly statement, reported the Australian Associated Press. The currency also took a hit from US President Barack Obama’s statement that US aircraft would be deployed, if necessary, to conduct airstrikes in Iraq.

“The Australian dollar finished New York trade little changed on Friday at US 92.75 cents having reached an intra-day, two-month low of US 92.39 cents following the downward revision to the Reserve Bank’s growth forecast,” said Ray Attrill, the global co-head of FX strategy at National Australia Bank.”We have opened little changed this morning.”

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Meanwhile, the New Zealand dollar traded near its 200-day moving average of US 84.60 cents as traders analyzed whether its 3.9 percent drop over the past four weeks was sufficient. The kiwi hovered at US 84.60 cents as of 8 a.m. trading in Wellington from US 84.56 at the close of trading in New York and US 84.44 cents in Wellington close on Friday.

The New Zealand dollar has dropped after it rose to as much as US 88.35 cents in July due to falling commodity prices, high demand for the dollar, the central bank’s intervention threats and a halt in interest rate increases.

Key factors that will influence the currency’s movement will be Ukraine and Iraqi tensions as well as China’s demand indicators. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Yashu Gola at yashu@forexminute.com