The decline of the AUD has come to a halt. Overview for 18.08.2023
The Australian dollar, paired with the US dollar, has ceased its decline but remains in a weakened position. The current AUDUSD exchange rate stands at 0.6398.
The day before, AUD reached its lowest point in 9 months.
Some stabilisation in AUD sentiment can be attributed to the actions of China's Central Bank. Yesterday, the regulator intervened by buying yuan on the currency market, thereby partially easing tensions in the markets. This stabilisation of the yuan has also benefited other Asian currencies.
As of this morning, it is known that Chinese authorities have instructed state banks to continue currency interventions. The necessary funds are available for this purpose. We will await the outcome, but it is believed that the results will become evident in the coming days.
The AUD exchange rate reacts strongly to developments in China's economy and finances, given that China is Australia's primary trade and economic partner.
There are also sufficient domestic factors exerting pressure on the AUD exchange rate. The main one is the Reserve Bank of Australia's inaction regarding the matter of interest rates.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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