The ‘Aussie’ snapped its biggest gains since November 2011 as speculation mounts that the Australian Reserve Bank could cut interest rates to a new record low next month. Also weighing on the currency is concern that the Chinese economy is slowing.
The Pound made gains after the Bank of England’s monetary policy committee voted 9-0 to leave interest rates and its monetary easing programme unchanged. New BoE governor Mark Carney has made his presence felt as two of the committee members who previously voted for more easing, Paul Fisher and David Miles changed their position.
The Australian Dollar/Pound Sterling Exchange Rate is : 0.6052
Weighing upon the ‘Aussie’ was speculation that the Chinese economy, Australia’s biggest trading partner, will slow down.
“There are still some downside risks for the Aussie,” said Janu Chan, a Sydney-based economist at St. George Bank Ltd. “there are a number of factors supporting that — the RBA is talking the currency down, the prospect for another rate cut, and additionally the uncertainty around China.’
The currency is likely to see further movement later in the session as US Federal Reserve Chairman Ben Bernanke testifies to congress. It’s thought that Bernanke will drive home a message that winding down the Fed’s asset purchasing programme will not presage an interest rate hike.
Thursday sees the release of the latest Australian business confidence data which depending on whether it shows improvement or a decline will affect the currency.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9205
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6998
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6052
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1716
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0863
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4289
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6521
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8534
Correct as of 11:30 am GMT
Comments are closed.