Australia: Australian dollar plunges in September
September 30, 2011
By 30 September, the Australian dollar (AUD) had depreciated 9.3% in nominal terms over the previous month and was trading at 0.97 USD per AUD, marking the first time in the last eight months that the AUD has traded below parity against the U.S. dollar. The September depreciation followed on from the 2.5% drop observed in August and, in fact, represented the fastest monthly depreciation since May 2010. In addition, the end-of-month reading constituted the lowest level at which the AUD has traded since November 2010. As a result of the monthly drop, the AUD has now depreciated an accumulated 3.8% versus the USD this year. However, at the current level, the AUD is still trading 1.2% stronger than in the same month last year. The AUD depreciated as prices for iron ore and coal, its key commodity exports, moderated in recent months, reflecting expectations of slowing global demand and more subdued growth prospects for China, the main destination for Australia's export commodities.
Author: Armando Ciccarelli, Head of Data Solutions