The Australian Dollar managed to recoup Tuesday’s losses against the Pound and climbed above 95 cents against the US Dollar as trade data beat economist expectations.
The ‘Aussie’ tumbled against the majority of its peers yesterday after the Reserve Bank of Australia chose to maintain interest rates at 2.5% and after RBA governor Glenn Stevens tried to talk down the currency. Stevens and other Australian policy makers want the ‘Aussie’ to weaken in order to bolster exports and deflect some of the affects expected to be generated by a slowdown in the nation’s mining boom.
Hopes for the currency to continue to fall were dashed on Wednesday after it rallied higher against its peers following the release of positive trade data which added to Monday’s strong retail sales data.
“The Aussie Dollar is doing quite well, in spite of the RBA governor’s statement yesterday where he used strong rhetoric, what we call jawboning. He said the Australian Dollar was uncomfortably high and would need to be lower for the economy to re-balance. We just had retail sales on Monday that was very good, trade balance data today that was better than expected, so in that regard we’re looking at the Aussie doing very well” said currency dealer Tony Darvall.
According to the Australian Bureau of Statistics said that the country’s trade deficit narrowed to A$284 million in September from the A$693 million recorded in August. Economists expected a September deficit of A$500 million.
The currency could receive further strengthening on Thursday if unemployment data comes in stronger than forecast.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9535
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7054
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5917
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1356
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4174
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6899
Correct as of 09:50 am GMT
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