The Australian dollar fell below $0.656 on Tuesday, approaching its weakest level in three months, as the U.S. dollar strengthened amid expectations that robust U.S. economic growth and aggressive trade policies under a Trump presidency could drive inflation higher.
Aussie dollar pressured by greenback strength
Adding pressure, weak economic data from China, a key trading partner, and an underwhelming stimulus package compounded concerns. The Australian dollar, often seen as a liquid proxy for the Chinese yuan, has been dragged down by ongoing uncertainties about China’s economic prospects. On the domestic front, Australia’s consumer confidence rose to a two-and-a-half-year high in November, buoyed by easing concerns over interest rate hikes, while business confidence reached a near two-year peak in October.
Focus turns to Q3 figures
Investors are now looking ahead to Wednesday’s third-quarter wages figures and Thursday's monthly jobs report for further insights into the strength of Australia's labor market.
