Aussie Plunges in Forex Trading

Risk trade passes Australian dollar by in currency tradingThe Aussie has plunged in [B]forex trading[/B] on the currency market today. After leading risk currencies for much of the year, the Australian dollar is now heading lower. Indeed, the risk trade has taken off on European news, but the Aussie has been left out.

GFT’s [B]Boris Schlossberg[/B] explains in FX360 why the Australian dollar is falling behind in currency trading:

The [B]currency market[/B] has been expecting the RBA to continue raising rates next year in a near linear fashion all the way up to the 4.25% level. However, Mr. Battellino’s remarks along with yesterday’s release of the RBA minutes suggest that Australian monetary authorities may now pause for a considerable amount of time before initiating any further tightening. [B]The news sunk Aussie below the key .9000 level[/B] and the unit could mired in the .9200-.8800 range for the rest of the year as traders await additional economic data from the land Down Under in Q1 of 2010.

Many [B]forex traders[/B] had expected the RBA to be hawkish for quite some time, and this news is distressing to many. As a result, investors are looking elsewhere for better certainty.

[B]See Also[/B]

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[li]Australian Dollar in Currency Trading[/li]Forex trading on the currency market
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