Australia: Australian dollar weakens in August
August 31, 2011
By 31 August, the Australian dollar (AUD) had depreciated 2.5% in nominal terms over the previous month and traded at AUD 1.0691 per USD, marking the 7th consecutive month that the AUD traded above parity against the U.S. dollar. The August depreciation contrasted the 2.0% appreciation observed in July 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 was traded over the previous five months. Despite the monthly drop, the AUD has now appreciated an accumulated 5.2% versus the USD this year and, at the current level, is trading 19.9% stronger than in the same month last year. The AUD remains strong on the back of high prices for iron ore and coal, its key commodity exports, which reflects booming demand from China and emerging Asian economies.
Author: Armando Ciccarelli, Head of Data Solutions