AUD & FX Commentary: August 19

AUD & FX Commentary: August 19|Australian Dollar News|Trade Forex NewsThe Australian dollar has remained under pressure over the last 24-hours with risk aversion continuing to be the salient theme affecting traders.

A sharp decline in equities, oil and copper overnight also dampened demand for the commodities based currency.

The local unit has remained weak during today’s Asian trading session, as has the Kiwi dollar.

The European currencies also weakened against the US dollar on overnight, with global growth concerns continuing to wreak havoc on equity markets.

The Euro lost a full cent against its US counterpart (EURUSD) while the Great British pound also lost significant ground against the greenback overnight (GBPUSD).

Elsewhere, the Japanese yen (JPY) and the Swiss franc (CHF) both rallied strongly against most of their major counterparties overnight, with traders searching for safe havens.

Looking ahead, following a downgrade in global growth forecast by Morgan Stanley overnight, the risky assets remain susceptible to further downside in coming sessions, which will likely translate into further pressure on risk currencies and demand for safe-havens.

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