Crypto Strain – The Australian Dollar is Down Against USD After China’s Property Default

Australian Dollar (AUD) has decreased in value against US Dollar (USD) due to fears about a possible credit crunch in China’s property industry.

It is reported that the Australian Dollar (AUD) has been weakened in value against US Dollar (USD) as it declined in the Asian trading session because of concerns over an upcoming credit squeeze in China’s property market. The situation was triggered due to a private developer Country Garden’s credit default.

Crypto Strain

In addition to the pressure upon and straining the Australian Dollar, the currency faced more challenges after revealing US Factory gate inflation numbers for July, which exceeded expectations. The public release of the data, particularly those of the Producer Price Index (PPI), raises the possibility of another rate hike imposed by the Federal Reserve (Fed). In the end, the US Dollar is likely poised to strengthen.

Australian Dollar Declines After Thursday’s Gain

After seeing significant gains on Thursday due to favourable market sentiment and a weaker US Dollar caused by the announcement of lower-than-expected US inflation data in July and August, the Australian Dollar reversed the gains. The change to a downward trend in the Australian Dollar may partly be due to the recent concerns regarding China’s economy.

Crypto Strain

Unsettling information about Chinese private property developer Country Garden’s debt default surfaced during the Asian trading session on Friday, raising worries about a potential collapse in China’s fragile property market. This development significantly impacted China’s Australian Dollar, considering the country’s significant dependence on exporting crucial resources like Iron Ore to fund Chinese Construction projects.

Reserve Bank of Australia:

Following Governor Lowe’s comments, however, the Australian dollar found some solace in the Asian trading session. The market saw these remarks as hawkish, being favourable to the AUD. Lowe stressed his Reserve Bank of Australia‘s (RBA) constant determination to fight inflation and opened the possibility of more interest rate hikes.

Disclaimer:

The information on this page is not a trading recommendation. Cryptoarenanews.com does not assume any responsibility for any investment decisions from the information available on this site. We strongly suggest an independent study and consult with a qualified professional before making any investment decision.

Previous articleHow To Find Web3 Jobs Available Near You
Next articleWhat Benefits May Work With A Boutique PR Agency In The USA Provide Your Company?

LEAVE A REPLY

Please enter your comment!
Please enter your name here