The ‘Aussie’ may have declined during the local session as a result of less-than-impressive domestic and foreign data, but the South Pacific asset fought back and recouped losses recorded against the Pound and US Dollar as European trade progressed.
The Australian Dollar exchange rate was trading in the region of 0.6132 against the British Pound as of 10:00 am GMT
The odds of the Reserve Bank of Australia issuing a rate cut in the months ahead increased as a National Australia Bank survey of business conditions hit an over four-year low in June.
Although interest rates have been held at record lows and the ‘Aussie’ has softened, helping exporters, business conditions in the manufacturing, mining and retail sectors were described as ‘very bad’.
In a statement accompanying the report NAB economist Alan Oster asserted: ‘Domestic weakness implied by this survey, along with softness in China, a weaker terms of trade and financial market volatility, encourages us to bring our next expected rate cut forward to August [from November] assuming no downside surprises from unemployment or inflation.’
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a low of 0.6062
The commodity-driven ‘Aussie’ was also adversely affected by an inflation report published by China’s National Bureau of Statistics. Consumer prices for June rose by 2.7 per cent from a year earlier, the acceleration was 0.2 per cent higher than forecast.
However, while this news from China dimmed Australia’s trade prospects, the ‘Aussie’ recouped losses against the US Dollar as the ‘Greenback’ broadly softened ahead of tomorrow’s news from the Federal Reserve.
The Australian Dollar was also able to advance on the Pound after Industrial Production in the UK was shown to have declined by significantly more than forecast.
Today’s global forecast from the International Monetary Fund could inspire additional ‘Aussie’ movement.
Current Exchange Australian Dollar (AUD) Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9179 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7134 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6132 >
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1690 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0890 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4092 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6309 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8563 >
Correct as of 10:00 am GMT
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