What you need to know about the Australian dollar’s recent fall
AUSTIN, Texas — The Australian dollar has dropped below 70 US cents against the U.S. dollar for the first time in a year as investors prepare to hit the market for a second straight week.
Aussie gold futures are down 0.5 per cent on Wednesday to settle at $US80.50 an ounce, down from the $US84.30 that it traded at on Monday.
“I think the Australian Dollar has been dragged down by the weak economic news that we’ve seen in the U: jobless claims and that was the main driver,” said Jeff Bierling, president of Bierlings Gold and Commodities Trading.
There was a huge drop in gold prices in Australia in the first half of 2018, when global demand was in the midst of a major economic recovery.
It was a dramatic change from the previous year when gold prices hit $US1,200 an ounce.
That drop has been more gradual than many analysts predicted, according to Bierlin, who said there is now less demand for gold and its commodities.
Bierling said gold prices are now a “further reflection of the weakness of the U.”
The Australian dollar was last trading at about 70 cents US.
For the second consecutive week, gold futures closed down 0,000 points, or about 0.1 per cent, to $US81.20 an ounce on Wednesday.
The next day, gold prices were down by about 10 per cent to $AU50.10 an ounce at 5:08 p.m.
Aussie gold prices settled down about 1 per cent in New York on Wednesday, but it was still down almost 10 per 100 grams, or 1.1 tonnes.
The dollar weakened in Asia on Wednesday and Australia’s main trading partner China said it will ease a ban on imports of Chinese-made products.
China has been restricting imports of some Australian-made goods, including dairy, meat and seafood, in a bid to rein in soaring prices in China.
Chinese Prime Minister Li Keqiang said last week he would ease the restrictions in the coming weeks, but said his government would continue to work closely with other countries to ease the restriction.
Australia has been one of China’s largest trading partners.