The Australian Dollar continued to weaken last week, with asset flows favouring the US Dollar over the Aussie as both countries reported mixed economic numbers.
The Aussie continued to weaken on Wednesday after Australian Construction Work Done declined significantly. Friday saw the Dollar weaken further after Australian Private Sector Credit increased. The Aussie showed a decrease of -0.6 percent from its previous weekly close.
The Aussie is set up for a second weekly decline after US Federal Reserve Chair Janet Yellen announced that the central bank is likely to keep trimming bond purchases globally.
Global markets are moving away from riskier assets after Russia threatened to invade the Ukraine, leading to the interim government in Kiev to put troops on high alert, according to Bank of New Zealand strategist Kymberly Martin.
This week’s Australian economic calendar is much busier than last week. Today saw the Reserve Bank of Australia Rate decision remain unchanged at 2.5 percent. Wednesday features the Gross Domestic Product, while Thursday brings Retails Sales and the Trade Balance. Friday concludes the week with a speech by the Reserve Bank of Australia Governor Stevens.
By Dylan Goate
Exchange rates as of 08:27, 04 March 2014
GBP / AUD: 1.8664
EUR / AUD: 1.5371
USD / AUD: 1.1170
AUD / NZD: 1.0679
AUD / ZAR: 9.7013
:: 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, or call us for a live dealing rate.
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