Australian Dollar softens after two-week highs

THE Australian Dollar traded between 1.023 and 1.041 US Dollars and between 0.654 and 0.664 British Pounds, from 16 to 23 July 2012.

The Australian Dollar rose to an almost fortnight high against the USD last week on the news that the American Federal Reserve Bank, chaired by Mr Bernanke, will stimulate the US economy in an attempt to boost growth in light of the country’s stubbornly poor jobs data.

Westpac chief currency strategist Robert Rennie said the Australian Dollar was taking full advantage of global economic conditions and had continued to trade well.

At the beginning of this week, the Australian Dollar weakened against its two-week high of USD1.04. St George economist Janu Chan said news of a bailout request from one of Spain’s regional governments had weakened markets over the weekend.

“There’s been a re-surfacing of worries in Europe; however, the Australian currency was still holding a good position in the market,” Ms Chan said.

Spain is the hot topic this week, but investors will be keeping a firm eye on Greece’s economy too.

GBP/AUD: 0.664
EUR/AUD: 0.853
USD/AUD: 1.037

Exchange rates as of 09:00 GMT+1, 23 July 2012

Compiled by Matthew Cridge of 1st Contact :: Note: The above exchange rates are based on “interbank” rates. If you want to transfer money to or from Australia then please register/login on our website, www.1stcontactforex.com, or call us on 0808 141 2335 for a live dealing rate. Make use of our Rate Notifier to send you alert when the Australian Dollar exchange rate reaches levels you are looking for.