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Australian and New Zealand dollars face pressure from US growth concerns

The Australian dollar remained near three-month lows. Weak U.S. data has increased fears of a sharp slowdown in the world’s largest economy, driving investors to seek safety in the yen and Swiss franc. The Aussie dropped overnight to just above its three-month low. For the week, the Australian dollar is down marking its third consecutive week of decline. This drop is partly due to the unwinding of the popular carry trade, where investors borrow the low-yielding yen to invest in higher-yield currencies. Against the yen, the Aussie hit a six-month low, bringing the weekly loss. It also reached a six-month low against the Swiss franc. Read here to find out how Kiwi dollar holds steady as it gains against Aussie.

more about Australian and New Zealand dollars

Disclaimer:

Traders should closely monitor upcoming economic reports for more clues on the future direction, while keeping to a risk management plan in navigating the markets.

Publication date:

2024-08-05 08:31:26 (GMT)

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