The Australian Dollar enjoyed a little respite during Australasian trading as comments issued by a central bank official gave the currency a boost and help it trim declines against the majority of its currency counterparts.
The Australian Dollar was trading in the region of 0.5470 against the British Pound as of 10:35 GMT
After being trapped in a bearish relationship with peers like the Pound and US Dollar in recent days the Australian Dollar was able to edge higher as Reserve Bank of Australia Governor Glenn Stevens commented that the nation’s historically low interest rate is helping domestic spending and supporting the economic recovery.
While addressing a parliamentary committee Stevens asserted; ‘Because inflation has been consistent with the target, the board has been quite comfortable in easing policy by a significant amount. The board has maintained an open mind about whether we may need to lower interest rates further. At this point, however, there are few serious claims that the cost of borrowing per se is holding back growth.’
Stevens also commented; ‘My judgement would be that an exchange rate over a Dollar or even in the 90s is unlikely to be a sustainable equilibrium for us over time.’
The Australian Dollar to Pound exchange rate hit a low of 0.5456
The ‘Aussie’ consequently gained on peers like the Pound and US Dollar, although gains were slightly tempered by the news that Australia’s Westpac leading index fell from 0.10 per cent in October to -0.10 per cent in November.
However, the AUD/GBP pairing gave up gains during the European session as the Pound broadly strengthened in response to surprisingly upbeat UK employment data.
Although economists had forecast that UK unemployment would hold at 7.6 per cent in November it actually fell to 7.4 per cent last month as the nation’s economy added a whopping 250,000 positions.
After the Federal Open Market Committee delivers its rate decision extensive market movement can be expected.
Additional AUD/GBP movement may also be inspired by tomorrow’s UK retail sales figures.
Current Australian Dollar Exchange (AUD) Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.8914 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6477 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5445 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.0792 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1232 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5439 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.8356 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9265 <
Correct as of 10:35 GMT
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