By Dylan Goate
THE Australian Dollar weakened last week Tuesday after the Reserve Bank Governor said that the local currency was ‘’uncomfortably high’’. The RBA Governor stated that a weaker currency was need to help rebalance growth in the economy, indicating the possibility of another Interest rate cut.
The Aussie continued to weaken on Friday after very strong US economic growth figures raised the possibility that the US Federal Reserve could start tapering its stimulus program sooner rather than later. The US economy grew by 2.8 percent in the 12 months up to September 2013, which was much stronger than the 1.9 percent analysts were expecting.
The Aussie has continued to weaken today on the back of surprisingly good US jobs data. US employers took on 204,000 new employees in October, almost twice the number forecasted by analysts, suggesting the US economy was on firmer footing.
The Aussie Dollar found steadier footing after data showed China’s factory output and investment grew in October. Australia is highly sensitive to news out of China, a key Export market.
The upcoming Australian economic calendar is much quieter than last week, featuring the NAB Business Confidence on Tuesday. Wednesday brings us the Westpac Consumer Sentiment survey and Wage Price Index. Thursday offers us Australian MI Inflation Expectations and New Motor Vehicle Sales, which concludes the week’s data as there is nothing to be release on Friday.
Exchange rates as of 11:40, 11 November 2013
GBP / AUD: 1.7090
EUR / AUD: 1.4289
USD / AUD: 1.0678
NZD / AUD: 0.8817
:: 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.