The Australian Dollar fell more than 1% to trade at its lowest level since 2009 against the Pound following the release of data which showed that Australian economic growth was weaker than investors expected.
The currency also declined against the rest of its most traded peers including the Euro and US Dollar where it slumped to a three-month low. The cause for the ‘Aussie’s’ fall today was the publication of weaker than expected GDP data and the growing expectation by investors that the US Federal Reserve will start to taper its monetary easing programme shortly.
According to the Australian statistics bureau the country’s GDP expanded by 0.6% in the third quarter. On a year by year basis it grew by 2.3%, less than the previous figure of 2.4%. Economists had been hoping for the quarterly to figure to improve to 0.7% and the yearly figure to be 2.6%.
“It’s a disappointing GDP number and we’re currently running significantly below trend, so clearly the Australian economy requires further stimulus,” said the global head of foreign exchange and commodity strategy at Westpac Banking Corp.
The weaker increased speculation that the Reserve Bank of Australia could introduce stimulus measures to bolster the nation’s economy. Governor Glenn Stevens hinted at such at the end of November in a speech. The RBA has repeatedly talked down the currency which it sees as overvalued and a threat to the country’s manufacturing and tourism industries.
Current Australian Dollar Exchange (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9014
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6635
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5513
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1018
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0930
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5070
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.8136
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9075
Correct as of 09:50 am GMT
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