Aussie Dollar threatens to slump below Greenback

The Australian Dollar has enjoyed a strong performance over the last year, cruising above the 100 US cent level for most of this time.

However, this star currency has seemed to be heading the other direction lately, having dropped by more than five cents in the past month.

Many have enjoyed the bargain internet purchases and overseas holiday packages, but this might become considerably more expensive as the Aussie slides back towards parity with the Greenback.

Robert Rennie, chief currency strategist at Westpac, was cited saying that: “The speed of decline over the past couple of weeks has us a bit concerned”, and that “I suspect we are going to see a dip below parity sooner rather than later.”

Mr. Rennie also mentioned that it would be unlikely for the Aussie to drop far below the key 100 US cent level, and that it should recover quickly.

He expects April to be a difficult month for the currency, as the Chinese GDP data to be released on Friday the 13^th is expected to be grim.

Further drops in the Chinese economy could see a decrease for the Aussie, he said.

At 7am AEST this morning, The Australian Dollar was seen trading at 102.70 US cents, moving down from 102.82 cents yesterday.

AUD/ GBP: 0.645764
AUD/ EUR: 0.780888
AUD/ USD: 1.025999
AUD/ JPY:  84.712618

Exchange rates as of 11:11, 05 April 2012

Composed by Chad Frieslich
:: Note: The above exchange rates are based on “interbank” rates.
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For last week’s Australian Dollar Review read here:  Aussie Dollar weakens