THE Australian Dollar saw advances in early trading on Monday morning, trading around 1.531 to the Pound. The gains against the majority of its peers were underpinned by a surging Yaun, after China reported its largest trade surplus this year, brightening prospects for commodity exports.
In their Quarterly Monetary Policy Statement released on Friday, the RBA forecast 2013 GDP to be 3 per cent. It also revised its 2014 GDP forecast range down .25 per cent from its August statement to between 2.25 and 3.35 per cent.
“The downward revision to mining investment reflects the effect of the recent decline in bulk commodity prices on mining companies’ cash flows and their plans for spending,” the RBA said.
Markets now expected that the cash rate will be reduced next month by 0.25 per cent.
Gavin Stacey, a Sydney based strategist at Barclays, was cited as saying that the recent inaction by the RBA and their accompanying statement all signalled that the RBA has an easing bias, but seemed to be more data-dependant than previously seen.
Markets await further data on Wednesday when the consumer confidence figures as well as Q3 wage price index data will be released.
Investors are expected to remain cautious as uncertainty in Europe and United States remains at the forefront.
Exchange Rates at 09.47, 12 November 2012
Composed by Monique Chapman of 1st Contact Money Transfers
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.