Against the US dollar, the Australian dollar is losing ground. US dollar is considered a safe haven in times of economic turmoil, so it’s not much of a surprise that the greenback is in demand versus the Aussie. With concerns about bond yields in Spain and Italy, and worries that Greece will end up leaving the eurozone after its political difficulties are sorted, it’s not much of a surprise that many Forex traders seek safe haven in the US dollar, eschewing high beta currencies.
On the other hand, though, the eurozone is so problematic that European currencies are falling out of favor. The Australian dollar is considered a better choice than the euro or the pound right now. For now, Aussie has the upper hand, and is even getting a little support from slightly improving gold prices.
At 14:04 GMT AUD/USD is down to 0.9910 from the open at 0.9928. EUR/AUD is down to 1.2814 from the open at 1.2821. GBP/AUD is down to 1.5950 from the open at 1.6029.
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