U.S. dollar has run this week after an acknowledgement by the Federal Reserve that the U.S. economy is continuing to improve, the stronger U.S. dollar continued to push the Australian dollar lower Thursday in an Asia trading session.
A weakness in domestic Australian economic data is also weighing on the currency and could lead to interest-rate reductions.
The Australian dollar fell to its lowest level since mid-January during the U.S. trading session Wednesday, as the U.S. dollar extended gains after the Federal Reserve's policy statement was taken as indicating a lower chance of more accommodative monetary policy in the near term.
At the same time, the aussie could continue to fall as economic data and official comments out of China signal a slowing in that economy, which is a huge trading partner for Australia.
On Wednesday in Asia, Chinese Premier Wen Jiabao reiterated the central government's commitment to cooling the national housing market, warning of damage to the economy if controls were loosened prematurely.
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.