The Australian dollar is quiet subdued today on the back of weak metal prices and more volatility in the Chinese share market left a cloud hanging over the currency.
The Aussie dollar's weakness was caused specifically by the fall in commodity prices with a strong connection emerging between China's share market and weak metals price according to Saxo Capital Markets private trader James Kim,
"Overnight the moves [in the currency] were influenced by the sell-off in base metals, most notably copper, and the sentiment flowing on from the fall in Chinese stocks," he said.
Westpac banks leading index which tracks nine gauges of economic activity came in at 0% yesterday right on par with analysts’ expectations which also failed to inspire the Aussie dollar.
All eyes will now be on the US Federal Reserve minutes meeting later today which may see the currency sink or swim as we head into the weekend.
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