Aussie Dollar Feeling the Heat as US Economy Surges

The Aussie dollar is getting smashed by most major currencies as the US posts some of its strongest results in the past 21 years.

The previous session brought a 1% drop and at time of writing it sits at 71 cents.

As you can see, it is at its lowest point since February 2016.

Australia Dollar-US Dollar comparison 2016-2018

This finance expert is predicting a serious crash in the value of the Aussie dollar. Get survival tips here (free).

US PMI numbers impacting Aussie dollar

Previously we have talked about the importance of PMI reports and their effect on markets.

Well, with the September PMI numbers in for the US, it is clear that the service sector has grown at its fastest pace in 21 years.

This comes on the back of a successful renegotiation of NAFTA, now rebranded as the USMCA.

However, US bond yields are the most important factor driving down the Aussie dollar.

The benchmark 10 year notes are now at 3.18% — the highest they have been since 2011.

These yields reflect the increase in the Federal Reserve’s interest rate as well as strong employment data.

Unemployment sits at 3.8% — near an 18 year low.

Going forward, it’s looking grim for the Aussie dollar.

Regards,

Ryan Clarkson-Ledward,
For 
Markets & Money

PS: Aussie Dollar Crash: Unique ‘crash protection’ investment to shield your wealth from a sinking dollar. Get the strategy here.


Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:


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