Doubts over the health of the global economy have risen to the forefront of investors’ minds causing the Australian Dollar to weaken against 14 of its 16 major counterparts.
The ‘Aussie’ is struggling to maintain its gains against the US Dollar as demand for safe havens increase. Investors are remaining cautious following the release of disappointing economic data out of the Asian economies of Japan and China. The Japanese data showed that its GDP had grown by just 0.3% in the second quarter of the year. Despite the concerns over the slowing global economy the Aussie remained close to its all-time high against the Euro.
Currently the Aussie is trading in the region of 0.858 against the Euro, 1.054 against the US Dollar and 0.673 against the British Pound.
The Pound is trading lower against a basket of currencies following the losses it made on Friday. Weak economic data from China has eased demand for perceived riskier currencies, but the losses were limited due to the Bank of England’s stance that it would not cut interest rates. Sterling rose against the euro.
The common currency was down 0.1 percent at 78.56 pence, dragged lower as European stocks went into reverse after a five-day run of gains on the back of the below-forecast Chinese data. Sterling has been falling against the Dollar and the Euro in recent weeks as the UK economic outlook has deteriorated and after BoE minutes showed policymakers debated a possible interest rate cut last month.
The Pound is currently trading in the region of 1.275 against the Euro and 1.566 against the US Dollar.