October 1, 2021

Failing to Maintain Rise, Aussie Dollar Slips Back

 The Aussie dollar returned under pressure on Friday as the market continued to be plagued by risky market sentiment.

The risk -sensitive currency traded lower around 0.72000 against the strong US dollar at the opening of the European session, failing to maintain gains on Thursday.

Previously, news of the possibility that China would have to lift sanctions on Australian coal is currently facing supply shortages.

Chinese Deputy Prime Minister Han Zheng had previously instructed national energy companies to increase purchases of fuel in the face of the winter, and this has led to higher prices of other energy products, including methane, natural gas and coal.

Beijing has banned imports of stoneware from Australia last year due to tensions between the two trading partners that have escalated over the Covid-19 issue.

Even so, the Aussie dollar again recorded a decline in today’s trading session, weakened by the strengthening greenback dollar and current political uncertainty in Australia.

Most recently, the Prime Minister of New South Wales (NSW), Gladys Berejiklian announced her resignation today after being convicted of corruption offenses.

NSW is currently still struggling to curb the spread of Covid-19 by working to increase vaccination rates in the state. The turmoil has caused investors to worry that efforts to block the coronavirus will be delayed.