Dollar Review – Australian dollar on the sidelines as interest rates hang in the balance

The Aussie Dollar has gone into a slight dip as global markets anxiously await the decision to be made by the Australian central bank regarding the announcement of the new interest rates.

The market is currently divided on what the outcome of the RBA will be, ahead of the largely anticipated meeting tomorrow.

French President, Nicolas Sarkozy, will meet with Chancellor Angela Merkel from Germany tonight before the summit of European leaders this coming December 9th.  The main focus of this meeting is believed to address the Eurozone government’s debt crisis spread and ways to bring it to a halt.

Tony Darvall, a currency dealer from Easy Forex, said that the Aussie Dollar had gradually lost ground during this period of quiet trade, and that he expected it to fall as traders seek safe-haven assets in anticipation of the meeting between the European leaders.

He also said that there is some downside risk ahead of the probability that the RBA will cut rates, and that this will not have a positive effect on the Aussie Dollar going forward.

The Australian dollar fell to 102.10 US cents at 5pm (AEDT) today, down from 102.25 cents on Friday.

Since then, it was seen trading between 102.02 US cents and 102.70 cents.

AUD/ GBP: 0.640139
AUD/ EUR: 0.746778                   
AUD/ USD: 1.01005      
AUD/ JPY:  78.171824
Exchange rates as of 11:16, 28 November 2011

Composed by Chad Frieslich
:: Note: The above exchange rates are based on “interbank” rates.  If you want to transfer money to or from Australiathen 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.