The Australian Dollar has continued its fall against the British Pound, falling to its lowest level in more than two years, as signs of a slowdown and weaker than expected data out of China weigh upon the Australian currency. Comments made by policy makers that the ‘Aussie’ is still too strong have also added to the cause of the currency’s continuing rapid decline.
Against the US Dollar the Australian currency slumped to its lowest level in more than three years and slid for a third day straight as speculation that the US Federal Reserve could choose to reduce its stimulus measures before the end of the year.
“Our high interest rates relative to the U.S. have kept the Aussie higher, as has our stronger economic growth, but as U.S. growth picks up, that has started to come away,” said Hans Kunnen, chief economist in Sydney at St. George Bank Ltd. “If they’re going to turn off the taps in the U.S., the dollar rises and the Aussie weakens.”
The ‘Aussie’ also fell against the Japanese Yen after the Bank of Japan revealed that it would not be making changes to its monetary easing policy, a move that disappointed investors.
Adding to the ‘Aussie’s’ decline is the release of data showing that home-loan approvals in the country rose by just 0.8% in April from the previous month, its lowest increase since January. Economists had been forecasting a rise of 2%. The poor data and the ongoing weakening picture in China have increased speculation that the Reserve Bank of Australia could opt to reduce the already record low interest rate level of 2.75%.
Current Australian Dollar (AUD) Exchange Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9359 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7046 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6016
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4192 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6620>
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8355 >
(Correct as of 10:25am GMT)
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