Australia: Australian dollar picks up in October
November 18, 2011
By 31 October, the Australian dollar (AUD) had appreciated 6.9% in nominal terms over the previous month and was trading at 1.06 USD per AUD. The October appreciation contrasted the 9.3% drop recorded in September, when the AUD traded below parity (0.97 USD per AUD) for the first time in eight months. In addition, the October reading constituted the largest appreciation since September 2010. As a result of the October rise, the AUD has now appreciated an accumulated 3.4% versus the USD this year. Furthermore, at its current level, the AUD is trading 7.7% stronger than in the same month last year. The Australian dollar had depreciated in August and September as prices for iron ore and coal, its key commodity exports, moderated, reflecting expectations of slowing global demand and more subdued growth prospects for China, the main destination for Australia's export commodities. Currently, the AUD is experiencing increased volatility as uncertainty persists in international financial markets. On 18 November, the AUD was trading at 1.00 USD which marked a 5.1% depreciation compared to the end of October.
Author: Armando Ciccarelli, Head of Data Solutions