During local trade the Australian Dollar shed some of its recent gains against the ‘Greenback’. Although the South Pacific currency initially surged against its American counterpart as it appeared that the Federal Reserve would be leaving policy unaltered for some time, domestic factors saw the ‘Aussie’ weaken.
The Australian Dollar exchange rate was trading in the region of 0.6049 against the British Pound as of 10:00 am GMT
A report compiled by the Australian Bureau of Statistics showed that Australian home loans rose by 1.8 per cent in June. While the gain does imply that low-rates are encouraging people to enter the property market, it was smaller than the 2.2 per cent climb expected.
This factor, in conjunction with the increasing likelihood of the Reserve Bank of Australia issuing a rate cut, led to widespread Australian Dollar declines during the Australasian session.
As well as slipping against the Pound the ‘Aussie’ trimmed its first weekly advance against the US Dollar for a month.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a low of 0.6014
With this month’s employment data showing an unexpected increase in the Australian unemployment rate, the odds of the RBA cutting rates to a fresh record low next month jumped from 45 per cent to 75 per cent.
Although the key rate currently stands at a record-low of 2.75 per cent, the majority of economists are forecasting that the central bank will cut it to 2.5 per cent in August.
In response to this week’s less-than-impressive news for both Australia and China (Australia’s biggest trading partner) Sydney-based industry expert Michael Judge stated: ‘Consumption, confidence, it’s all heading south. If we see a cut, we’re going to see a correction in the Aussie. But I think 90 US cents will hold.’
Judge also observed: ‘The broader-term Aussie Dollar weakness is going to continue. If you see jumps up to 92, 92 ½ US cents, that’s a good sell signal for the Aussie.’
Declines against the Pound were limited as the British currency was knocked by a larger-than-expected decline in UK construction output.
The New Zealand Dollar held steady against several of its main peers during the local session and gained modestly on the US Dollar. The South Pacific currency is in-line to record a five-day gain of 2 per cent against its American rival.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9157 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7018 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6049 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1667 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0924 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4245 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6541 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8570 >
Correct as of 10:15 am GMT
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