The Australian Dollar weakened close to a 2-month low as investors release their carry trades made from money borrowed from the low yielding Japan amidst the continuation on the concerns that the subprime mortgage losses will cause a reduction on the growth of the global economy. The Australian Dollar fell to a 2 1/2-month low against the Japanese Yen after analysts from the Goldman Sachs Group Inc. said that HSBC Holdings Plc may need to set aside an extra 12 billion dollars for bad debts. ''The currency may extend losses further on risk aversion,'' said John Rothfield, senior currency strategist at Banc of America Corp. in San Francisco. ''U.S. stocks are down significantly. The more you think the bad news is priced in, you get more negative information.''
The Australian dollar slid 1.7 percent in forex trading to 87.05 U.S. cents this morning in Sydney. It fell to 86.55 cents on Nov. 21, the weakest since September 26. It fell about 6.9 percent against the US Dollar in November. The currency fell to 93.47 Japanese Yen from 96.08 Yen and touched 93.01 Yen, its lowest level since September 10.
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