Australian Dollar slides on interest rate cut speculation
AUSTRALIAN DOLLAR REVIEW | Currency slides in Monday trading after retails sales data shows stagnation, fanning interest rate cut speculation.
THE Australian Dollar started last week trading slightly higher compared to close of markets on Friday. This was due to the anticipation of a meeting held by European leaders where they were expected to discuss a possible bailout package for Greece. The Aussie Dollar was trading at 1.5322 to the British Pound and 0.9558 to the US Dollar.
Tuesday saw the Aussie Dollar trade near a two month high after equities rebounded globally on the speculation that the US will avoid the so-called fiscal cliff, which helped boost demand for higher-yielding assets.
But the Australian currency then declined against most of its major peers going into the end of the week amid speculation that the RBA would lower interest rates this week to shield the economy from a slowdown in mining.
The Australian Dollar finished the week trading at 1.537 to the British Pound and 0.9591 to the US Dollar.
The slide continued into the new week after data showed the nation’s retails sales unexpectedly stagnated, further fanning the interest rate cut speculation.
By Trevor Brewer of 1st Contact
Exchange rates at 08:00 GMT, 3 December 2012
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