Australian Dollar likely to end November on a low point

graph and charts on a computer screen

In short

  1. The Australian dollar has lost ground in November
  2. It has lost the most ground to the US dollar but is also down against the New Zealand Dollar, Euro, British Pound and Japanese Yen
  3. Interest rate expectations in Australia weighs on the AUD

AUD to USD exchange rates

TimeOpenLowHigh
Today0.6766
In the last week0.67610.6811
In the last month0.67610.6926

The Australian dollar falling

In November, the Australian dollar has fallen:

  • 1% against the US dollar and more than 2% from it's recent peak at 0.6926
  • 1% against the British Pound and more than 2% from it's recent peak at 0.5389
  • 2% against the New Zealand dollar

 

Why?

There are 2 main reasons the Australian dollar is falling at the moment. The first reason is all about interest rates. In Australia, the RBA has cut official interest rates 3 times this year and will mostly likely cut them further in 2020. This places downward pressure on the Australian dollar. As interest rates fall, demand for the currency falls as money flows out of Australia into other countries that have higher interest rates.

Secondly, the falling exchange rate can have as much to do with the other currency as the Australian dollar. That is, the US dollar, British Pound and New Zealand dollar have all gotten stronger on their own in November which moves the exchange rate against the Australian dollar down.

Up Next

Overseas, markets will be watching GDP data out of the US and Canada along with inflation data from the UK, Europe and Japan.

 

CountryDayEvent
AustraliaTuesdayRBA Governor Speech
USATuesdayFederal Reserve Chair Powell Speech
USAWednesdayGDP data
JapanThursdayCPI (inflation) data
EurozoneFridayCPI (inflation) data
CanadaFridayGDP data