Aussie under pressure ahead of RBA meeting

The Aussie closed substantially weaker on Friday the 16th of September 2011 at 1.53 to the British Pound and 0.968 to the US Dollar.

The RBA (Royal Bank ofAustralia) plans to release minutes of its Monetary Policy meeting on the 20th of September 2011. The RBA has decided to keep its rates constant and left them unchanged at 4.75 percent. They said that global markets have been very unsettled as of late and that a rate change was not on the cards for the near future.

Australian housing statistics also showed a slow down of 4.7 percent which suggests a tightening in consumption throughout Australian businesses and households. This backs the Australian Reserve Banks’ decision to leave rates unchanged. The slump in consumption will only be further fuelled by a rate hike.

The statement by the RBA also suggested that employment has been moderate this year and that CPI inflation data is expected to decline in the future. The news coming from this weeks’ announcement will be closely watched by all affected parties. “This should increase the scope for the central bank to cut interest rates now if the economy weakens under the impact of slower global growth,” Mr Mohi-uddin said.

GBP/AUD:      1.5345
EUR/AUD:     1.3345
AUD/USD:     1.0236
AUD/JPY:       78.631

Exchange Rates at 10:01, 19 September 2011

Composed by Paul Gerber
:: Note: The above exchange rates are based on “interbank” rates.
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