With the Federal Open Market Committee’s highly anticipated two-day policy meeting coming to a close today, and industry experts expecting big shifts in the market after Federal Reserve Chairman Ben Bernanke releases his statement, the ‘Aussie’ dipped against its US counterpart for a third day during local trade.
The Australian Dollar exchange rate was trading in the region of 0.9510 against the US Dollar as of 10:00 am GMT
The South Pacific currency hit its lowest level against the US Dollar for nearly a week as investors speculate on whether or not Bernanke will put a time frame on reducing quantitative easing in the world’s largest economy.
According to Westpac Banking Corp. currency analyst Robert Rennie: ‘I think the message is very much nervous, choppy price action going into Bernanke. Aussie hasn’t traded well.’
The Australian Dollar to US Dollar (AUD/USD) exchange rate hit a low of 0.9435
During the Australasian session the Australian Dollar hit a low of 0.9435 against the US Dollar.
However, Rennie added: ‘I do think though, that we’re showing some signs of building a base in this 94, 94.50 US cent region.’
Conversely, a strategist with Norma Holdings was quoted as stating yesterday that declining commodity prices are likely to see the ‘Aussie’ weakening to 90 US cents by the end of the year.
Over the past three months the Australian Dollar has shed 10 per cent, making it the worst performing developed market currency tracked by Bloomberg News Agency’s correlation weighted index.
However, in the minutes from the Reserve Bank of Australia’s most recent policy meeting it was intimated that the exchange rate could still fall further.
The minutes asserted: ‘The exchange rate had also depreciated noticeably, though it remained at a high level considering the decline in export prices that had taken place over the past year and a half. It was possible that the exchange rate would depreciate further over time as the terms of trade declined, which would help to foster a rebalancing of growth in the economy.’
A lack of pertinent domestic economic news for the rest of the week means that additional ‘Aussie’ fluctuations are most likely to result from global economic developments – most particularly news from the US.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9510 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7094 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6071 >
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1875 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0520 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4097 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6456 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8437 >
Correct as of 10:00 am GMT
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