Commodity price slump
The upcoming data on Austrialia’s employment market, and the collapse in oil prices could cause the rebound of the Australian dollar to start reversing.
As currency experts, Halo Financial (www.halofinancial.com) explains, “In the past two weeks, the Australian dollar has surged higher in foreign exchange markets amid a new wave of global investor confidence, inspired by the declining number of cases and deaths across Asia and Europe.”
“Since the market opening on Wednesday, Australian Dollar (AUD) has dropped -0.64% against pound Sterling (AUD/GBP) and -1.42% against the US dollar (AUDUSD),” continues Halo Financial.
“As Asia and commodity markets heavily influence the Australian dollar’s movement, increased demand in Asia has often pushed the currency higher in foreign exchange markets. However, when commodity demand wanes in Asia, the Australian dollar also suffers.”