AUD/USD: Aussie Adds More Year-End Gains in Low Volatility Year 

The Australian dollar rises to a 5-month high into year-end adding more gains in a low volatility year. At the interbank market, the AUD/USD exchange rate settled at 0.6993 at the end of Monday’s close, registering a 0.19% increase in value. The Aussie was seen trading between a tight trading range of 0.6978 and 0.7004 and before the New York open was seen back above the big psychological number 0.7000. 

In other news, China saw its manufacturing activity expanding by 50.2 compared to 50.1 the market forecast. China’s National Bureau of Statistics revealed the sector of automobiles, food and beverage and medicine saw the strongest growth in the manufacturing activity. Any reading above the 50 mark indicates expansion and China’s PMI expanded for the second straight month.

The year-end rally has brought the year-to-date performance of the Aussie down to only -0.58%. 

The Australian dollar outlook for the year ahead remains gloomy as the RBA is expected to cut interest rates by mid-2020. In 2020 the AUD also remains vulnerable to developments from China and the hopes of easing trade tensions should boost the bids for higher yielding currencies.

Elsewhere, the precious metal Gold is finishing the year on a strong note delivering its strongest performance since 2010. The safe haven bids have been motivated this year by the trade war between the world’s two biggest economies, Brexit fears, the global slowdown and easing efforts amongst most major central banks. 

XAU was up 0.48% to 1,525 during the London trading hours on Tuesday.

The dollar index, which gauges the greenback’s strength against a basket of major currencies, continues to be on defensive trading lower. The DXY was seen quoted at 96.57 during the London trading hours. 

The domestic benchmark equity index, S&P/ASX 200 index settled on Tuesday at 6684.10 registering a loss of -1.77%. Year-to-date the Australian stock market has gained double digit returns of 18.38%.

Elsewhere, the Australian 10-year government bond yield closed unchanged at 1.374 on Tuesday. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.