The Australian dollar has been mostly falling this week, particularly against the US dollar. Following remarks by Federal Reserve Chair Yellen indicating that more interest rate hikes were likely, the Aussie has weakened. Unlike the US, the Reserve Bank of Australia has denied any inclination to raise interest rates. As markets price in higher interest rates for the US dollar in the future, the Australian dollar has sold off accordingly.
AUD/USD is currently trading near 0.7830, having started the week closer to 0.7960. While the Aussie strengthened sharply against the euro on Monday (following German elections results over the weekend), the pair has since weakened below 1.50. EUR/AUD is currently closer to 1.4970. AUD has fallen all week against the Japanese yen, despite subsiding tensions in the Korean Peninsula. AUD/JPY is currently trading around 88.50, having started the week closer to 90.20.
This is a very slow week for economic data in Australia. This Friday we'll see housing credit and private sector credit data - both of which are unlikely to influence the currency.