THE Australian Dollar started trading on Monday at similar levels to the previous week however it weakened against its major counterparts in early Asian session as economic data from Japan, Australia and China raised pessimism about the outlook for global economic growth.
The Aussie was weak on Wednesday as a surge in Spain’s borrowing costs was met with protests against the country’s austerity measures. The markets reflected the nervousness surrounding the Spanish situation ahead of the release of the country’s 2013 budget outline on Thursday, citing further spending cuts.
The Australian currency finished the week stronger though, following Spain’s budget announcement which ultimately buoyed the markets, if not the protesters, along with positive new steps taken by Greece.
The Australian Dollar further appreciated against the US currency as speculation that the Chinese government would announce measures to bolster the country’s equity markets encouraged recovery.
This week will see the board of the Reserve Bank of Australia meet on Tuesday with the financial markets pricing in a near 70 per cent likelihood of a one-quarter of a percentage point interest rate cut.
AUS/ GBP: 0.644026
AUS/ EURO: 0.809488
AUS/ USD: 1.045446
AUS/ JPY: 81.189299
Exchange rates as of 28 September 2012
Composed by Trevor Brewer of 1st Contact
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.