AUD fell on Friday 09th November 2018, showing that investors are taking less risk when it comes to investing in the currency.
The Australian dollar close the week at .7224, but has dropped again in fresh trading on 12th November 2018, seeing the USD/AUD currency pair trading at .7212.
This can be attributed toward the weakness seen in GBP, which is helping USD make gains with the USD index.
AUD Faces Further Pressure
More pressure will be places upon AUD as new statistics are released. New Home Loans have fallen 1 percent in September and reflect stats on a month-to-month basis. This surpasses the original forecast made by analysts of 0.9 percent.
There has also been a dip of 2.8 percent in investment housing loans. This again is on a month-to-month basis. These two revelations alone are enough for investors to be wary when investing in Forex.
Employment data is expected in the coming weeks. The unemployment rate is expected to rise by a basis point to
Strategists have noted that the AUD/USD pairing has fell below the Reserve Bank of Australia rate. Recent economic data for Australia has been positive, meaning there is more potential for a raise in rates in 2019.
In turn, this will contribute towards GDP growth and a rise in inflation.
Analysts also state that the way in which trade negotiations are made with China could also have an impact on AUD.
It isn’t known if Trump will look to add pressure to negotiations or undertake the role of the middleman.
This could potentially counteract other reports and ensures that AUD stands its ground during turbulent times, making itself known in 2019.
GBP/AUD Continues Downward Trend
On 12th November 2018, the GBP/AUD pairing is currently trading at 1.7872, the lowest since September.
The currency pair has seen a downward trend for the past seven days, and the trends has been spotted by analyst over the last few weeks.
Much of the tension associated with the pairing is said to be due to ongoing Brexit talks, where the European Union has recently rejected Brexit proposals put forward by British Prime Minister, Theresa May.
As the Conservative government only has small majority, there is a greater risk of opposition. This could be from the DUP, or those apposed to a soft Brexit. Again, these factors can be detrimental to GBP, affecting the GBP/AUD pairing as a result.