The Australian Dollar touched on a 4-year trough versus the greenback, falling on data which shows that the Chinese economy continues to struggle to grow as well as efforts by the Reserve Bank of Australia to purposely devalue it. The Euro managed to ease up ahead of the greenback after brief slippage which came in the wake of comments made by an official of the European Central Bank who said that government-backed asset purchases were likely to begin next month. Analysts believe that the Euro could be tested today given those comments.
As reported at 8:39 a.m. (GMT) in London, the AUD/USD was trading at $0.8494, closer to the low end of the day’s trading range, $0.8479 to $0.8565. The AUD/NZD is trading lower at 1.0871, and strategists are watching the pair to see if it breaks below the New Zealand Dollar’s support level. The EUR/USD was trading at $1.2454, a loss of 0.16%.
Key U.S. Data Ahead
Investors are also waiting for U.S. data which could help provide further and broad support for the U.S. Dollar; that data includes consumer sentiment, a very important measure given that consumers account for the majority of GDP inputs, as well as durable goods and jobless claims.