The Australian Dollar has weakened against the Pound and a number of other peers including the New Zealand Dollar after the Reserve Bank of Australia decided to refrain from cutting interest rates and as Governor Glenn Stevens warned that the currency was ‘uncomfortably high’.
The Australian Central Bank chose to keep rates at the already record low level of 2.5% for a third consecutive month saying that the cuts made earlier in the year were showing signs of supporting the national economy.
“The Australian Dollar, while below its level earlier in the year, is still uncomfortably high. A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy,” said RBA Governor Glenn Stevens.
Following the Governor’s comments the ‘Aussie’ fell against the majority of its peers.
Despite today’s fall it will not be enough to sate Stevens desire for a softer currency as events in the US and in particular the Federal Reserve is currently the main driver of the forex market at the moment. He will be hoping that the US Central Bank will choose to taper its $85 billion per month monetary easing programme. A cut to the programme will boost the US Dollar and weaken the ‘Aussie’.
The Pound climbed higher following the publication of better-than-expected Purchasing Manager Index Services data. The report came in above investor forecasts of 60.3 to come in at 62.5, further highlighting the continuing strength of the UK’s economic recovery.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9474
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7026
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5909
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1437
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4232
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6922
Correct as of 10:00 am GMT
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