THE Australian dollar fell to fresh three year lows against major trading currencies over this past week as data and speculation continued to drive down the already weakened currency. A combination of mixed data out of the US that showed a falling unemployment rate along with growing equities that set the greenback up for a promising quarter.
Since the beginning of the year the Australian dollar has dropped 13.8% and is on route to being 2013’s worst performer. The economic slowdown in China, the US recovery, withering local business confidence, weak retail data and growing unemployment rates have all been major contributing factors to the Aussies demise.
It now seems any hopes for a short term Australian currency recovery are also dashed.
Taking a look at the plus side of a weakened currency though, local tourism is beginning to show some improvement as local businesses report record numbers for incoming visitors and have welcomed the deteriorating Aussie.
Focused this week is on the effects of the interest rate announcement by the RBA, due Tuesday afternoon in Australia. Ahead of the announcement, a cut of 0.25% is the overwhelming consensus of market commentators and traders.
By Anton van Teylingen of 1st Contact Money Transfers
Exchange rates at 10:00GMT, 05 August 2013
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