THE Australian dollar came under pressure on Friday night in late trading and revisited the low USD 0.90s. This followed Chinese Finance Minister Low Jiwei saying economic growth in China could average 7 percent in 2013 and that the country could live with a figure of 6.5 percent. The comment, along with the Philadelphia US Federal Reserve President Plosser’s opinion that tapering by the US Fed should begin in September and as a result would raise US interest rates from their current level, weakened the AUD.
The Aussie had begun trading last week at around 1.6374 to the British pound and around 1.1027 against the US Dollar. The Australian currency steadily weakened throughout the week against both currencies to end on Friday at 1.6683 to the pound and 1.1051 to US dollar even before the remarks.
The Australian Dollar climbed back in early Monday trade though after China’s second-quarter economic growth matched market expectations, easing worries that the world’s second-largest economy could be slowing faster than expected.
Australian government bond futures rose, with the three-year bond futures up 0.03 points to 97.330, while the 10-year contract added 0.01 points to 96.265.
Composed by Dylan Goate of 1st Contact Money Transfers
Exchange rates at 09:37 GMT, 15 July 2013
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