The Australian Dollar has strengthened against the majority of its peers after the Oceanic nation posted a stronger-than-expected monthly jobs report and as speculation mounts over the next move for interest rates.
Employers in the country added an extra 50,100 jobs in April, smashing economist predictions of a rise of 11,000. The overall jobless rate also declined from 5.6% to 5.5%. According to the government, full-time employment increased by 34,500 and part-time positions increased by 15,600. The labour-participation rate also improved, rising from 65.2 % in March to 65.3%.
The strong jobs data has increased speculation over the next move for interest rates with some economists expecting the positive data to lend support to the Reserve Bank of Australia opting to increase the rate. On Tuesday the Bank opted to cut the rate by a quarter of a per cent to a record low of 2.75%, a move that surprised the markets.
Reserve Bank of Australia (RBA) Gov. Glenn Stevens cited “below trend” economic growth and inflation “consistent with the target and, if anything, a little lower than expected,” as factors behind the central bank’s decision. He also noted the Aussie has remained high despite previous interest-rate cuts.
The currency was also supported by data out of China, Australia’s biggest trading partner. The Asian nation saw consumer prices rise in April by a more-than-expected figure.
Some economists are warning that the ‘Aussie’s’ strength is failing and won’t last forever with Stanley Druckenmiller saying “We think the Australian dollar will come down and will come down hard,” he said yesterday at the Sohn Investment Conference in New York. “It’s expensive.”
Current Australian Dollar (AUD) Exchange Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 1.0237
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7774
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6581
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2113
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9767
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.2863
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.5193
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8255
(Correct as if 09:30 am GMT)
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