THE Australian dollar started trading this week (5 — 12 August) stronger after it fell to a three-year low on the previous Friday. The past week saw several local data sets and figures being released, many of which had a bearing on the direction the Aussie took. The data released included the Australian Retail Sales figures, the Reserve Bank of Australia’s interest rate decision and the Australian employment figures.
On Tuesday morning the Australian dollar was trading lower after weaker Retail Sales figures put more pressure on the Reserve Bank to cut the interest rate. As expected the RBA decided to lower the interest rate to a record low of 2.5%. On Thursday the Australian Bureau of Statistics figures showed that the unemployment rate remained at 5.7 per cent in July.
The weak local data put downward pressure on the Aussie dollar; however there was some respite from abroad. Positive Chinese trade data released on Thursday went some way toward easing fears of a Chinese economic slowdown and in turn helped to strengthen the Australian dollar. According to Rashique Rahman of Morgan Stanley: “This should continue to support the broader risk environment, prolonging a rally in commodity currencies.”
On Friday the RBA stated that it will continue to adjust rates “as needed” and according to Sean Callow at Westpac, “this more-neutral outlook has helped lift the Australian dollar”.
Composed by Jaco Herselman
Exchange rates as of 09:15 (GMT), 12 August 2013.
GBP / AUD: 1.6904
EUR / AUD: 1.4535
USD / AUD: 1.0927
NZD / AUD: 0.8742
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.