The US Dollar managed to climb to 1.33 against the Australian Dollar during Thursday’s trading session, though looking ahead, maintaining such a positive performance seems increasingly difficult for the US currency.
The Australian Dollar found itself in low demand over the session on account of unemployment data. For the future, Australia’s continued trade relationship with China is set to become a dominant issue, especially in the context of US political and economic interests.
USD, AUD Update: US Dollar Appreciates on Oil News, Australian Dollar Unsettled by Unemployment Stats
US Dollar exchange rates were positive over Thursday’s trading session, owing mainly to the outcome of early-September’s crude oil stock change for the start of September.
While a decline in stockpiles would usually be negative, the fact that US oil stocks are down has pushed the value of the commodity up due to reduced supply and still-high demand; this has resulted in the steady appreciation of the US Dollar.
For the Australian Dollar, Thursday’s news was less supportive; the August employment change saw a drop of -3.9k persons.
This was, however, countered to some extent by the unemployment rate falling from 5.7% to 5.6% which was in turn caused by a participation rate decline from 64.9% to 64.7%.
US Dollar Outlook: Health to Remain a Pressing Issue as US Election Rumbles On
The 2016 Presidential Election still has over a month to go before the November 8th voting day, so the volatility of the US Dollar is only expected to increase as that historic day approaches.
The latest jolt in the campaign has seen Democrat Hillary Clinton temporarily fall ill from pneumonia; the news brought a converse uptick in the polls for Republican Donald Trump’s appeal.
The general wellbeing of both candidates is expected to be closely scrutinised as the race for the White House continues, give that Clinton is 68 and Trump is 70; if Clinton suffers from any further ailments, expect the US Dollar to dip sharply on the implied instability generated by such news.
Australian Dollar Predictions: Chinese Manufacturing and RBA Rate Data to Shift Investor Opinions Up Ahead
Looking to the future of Australia’s economic prospects, main trading partner China is expected to factor heavily into the performance of the Australian Dollar.
Recently, US Ambassador to Australia John Berry has expressed concern about China’s economic influence in Australia, particularly with regard to foreign donations.
Looking ahead, the ‘Aussie’ is set to be shifted by October’s opening Reserve Bank of Australia (RBA) interest rate decision, as well as China’s manufacturing PMI results for September, due at the end of September and start of October respectively.
The official cash rate is forecast to remain at 1.5%, while Chinese manufacturing is expected to dip, which could damage the Australian Dollar’s appeal.
Recent USD AUD Exchange Rates
At the time of writing, the US Dollar Australian Dollar (USD AUD) exchange rate was trending in the region of 1.3379 and the Australian Dollar US Dollar (AUD USD) exchange rate was trending in the region of 0.7476.