Australian Dollar:
The Australian dollar got off to a slow start on Friday trading within a tight range. The Aussie opened the day at 0.8761 drifting 11 points lower to 0.8750. As the session continued the Aussie drifted back to its open price ahead of the long weekend. However late in the afternoon headlines surprised causing the Aussie to tumble, reaching lows of 0.8661 against the US. An announcement from RBA board member Rider talking the currency lower ?I think it hasn?t fallen far enough? stating that 80 cents would be a fair value was released. These comments along with a recent run of poor data out of China, Australia?s largest trading partner sent the Aussie into a spiral downwards. The article was published disclosing, China has been said to have issued an alert on credit risks in the coal industry. Overnight the Aussie managed to consolidate opening substantially lower today at 0.8699 against the Greenback. With the long weekend in Australia due to Australia day investors will be focused on the New Home sales out of the US for guidance tonight and the US Fed?s decision on tapering later this week.
It will be time to bring home the bacon for me, if this continues.