The Australian Dollar has fallen close to a three-year low against the Pound and hit a fresh three-year low against the US Dollar after retail sales data for June reinforced expectations that the nation’s Central Bank will cut interest rates tomorrow.
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5813
According to the Australian Bureau of Statistics retail sales in the Oceanic country grew at their slowest pace in 51 years over the year leading to June 30th 2013. In the second quarter of the year, retail activity was flat from the first quarter meaning that retail activity contributed nothing to the country’s economic growth for the period.
As a result of the data release the financial markets are now 100% confident that the Reserve Bank of Australia will cut interest rates at its policy meeting tomorrow. The rate is expected to be cut to 2.5%, down from the record low level of 2.75%.
Comments made by RBA governor Glenn Stevens also supported the expectations after last week saying that weak business confidence and inflation meant that there was no impediment to cutting rates further.
“The RBA will cut the official cash rate by 25 basis points following tomorrow’s board meeting, with business and consumer confidence subdued and non-mining related spending restrained, the bias also remains for lower rates from here,” said Dylan Eades, an economist at ANZ.
In the past three months the Australian Dollar declined by 13% making it the worst performing developed- market currency.
Current Exchange Australian Dollar (AUD) Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.8908 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6700 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5813 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1417 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1225 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4924 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7202 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8758 <
Correct as of 09:45 am GMT
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