Political turmoil is playing havoc with the Australian Dollar which could continue to slide against the greenback. According to analysts, the ruling party's infighting is viewed as the backdrop for possible policy paralysis. The Australian Prime Minister is being challenged from within his own party, and Malcolm Turnbull's fate could soon see a turning point as his political rivals seek to force a leadership vote. As a result of the infighting, the AUD/USD lost about 1.5% in Thursday trade.
As reported at 10:32 am (JST) in Tokyo, the AUD/USD was trading at $0.7252, up 0.02%; the pair has ranged from a low of $0.72399 to a high of $0.72571 in the trading session. The EUR/AUD is trading at 1.59257 Australian Dollars, up 0.04% and off the session peak of 1.59407 Australian Dollars.
China's Trade War Weighs
Some currency strategists believe that the Australian confidence crisis could mean the AUD/USD will test the $0.70 level before the end of the year; the last time the pair was priced that low was more than two years ago. In January 2018, the pair had touched on a high of $0.8136. The escalating trade war between the United States and China is only weighing on the Aussie, especially given the especially strong trade relationship between Australian and China. Any slowdown of the Chinese economy will reverberate through Antipodean currencies like the Aussie but also the Kiwi Dollar.