Dollar Review – Aussie Dollar hesitates before RBA announcement

The Aussie Dollar started the week stronger last Monday at 0.653 to the British pound and 1.034 to the U.S. Dollar. This comes on the back of news from European leaders that they may finally be announcing measures to resolve the European debt crisis. French President Nicolas Sarkozy and German Chancellor Angela Merkel were both cited as saying that a “comprehensive package of measures against the euro-zone crisis” can be expected by early November.

This positive movement in the Aussie was further supported by the optimisticU.S.employment data which was pleasantly stronger than economists had expected.

On a domestic front the Aussie was seen to have weakened over the weekend before the release of the minutes of the Reserve bank meeting at the beginning of the month. Governor Glenn Stevens was cited as saying the there is a greater scope to cut interest rates if the need arose.

Gavin Stacey Chief interest-rate strategist at Barclay’s Capital inSydneywas quoted as saying that after the large movement’s that we have seen recently, one becomes more susceptible to down side surprises for any disappointment from the Reserve Bank ofAustraliaand the global policy front.

The Australian dollar has declined by 0.3 percent to the Yen this week after an impressive surge of 5.9 percent last week.

GBP/AUD:      1.52907
EUR/AUD:     1.34127
AUD/USD:     1.03465
AUD/JPY:       79.6231

Exchange Rates at 09:16, 17 October 2011

Composed by Monique Chapman
:: Note: The above exchange rates are based on “interbank” rates.  If you want to transfer money to or fromAustraliathen please register/login on our website, www.1stcontactforex.com, or call us for a live dealing rate.  Make use of a Rate Notifier to send you alert when the Australian exchange rate reaches levels you are looking for.