The effects of the economic problems around the world can be seen in the latest evolution of the Australian Dollar. The problems around the world have caused all economies to weaken due to the decrease in demand and to the concerns of investors. The Australian Dollar has ended a week of losses against most of its major counterparts, especially the US Dollar and the Euro. This is both due to the negative fundamentals Australia is faced with at the moment and to the decision taken by the Australian Central Bank of cutting the value of the interest rates.
It is important to know that the Australian Dollar is very much dependant on the way in which commodities perform due to the fact that Australia’s economy is based especially on exports. The fact is that commodities are under a lot of pressure at the moment due to numerous negative factors around the world. One of the main issues is Read more »