The Australian Dollar has extended its first weekly gain against its US relation in six weeks as speculation over record bets over the currency’s decline in recent weeks was overdone.
The ‘Aussie’ recovered from its biggest drop in a week ahead of the release of the minutes for June’s Bank of Australia policy meeting. The release of the minutes has caused the rise due to expectations that they could hint of a potential interest rate cut in the near future.
Over the past six weeks the currency has been battered and bruised as currency investors chose to give it a kicking as they looked elsewhere for higher yielding or safer assets. Now however the ‘Aussie’ has got back onto its feet after rallying hard, jumping up by 3.2% from the 33-month low recorded last Thursday.
The ‘Aussie’ tumbled amidst concerns that a cooling mining investment boom would hit the country’s growth, with economists rushing to slash forecasts for expansion in 2013 and 2014. Some have even warned of a growing risk of recession as non-mining industries are unable to fill the growth gap.
Now though a more sober reading of the Australian Dollar’s prospects is overdue, said Robert Rennie, the head currency strategist at Westpac.
“I think it is probably fair to say the pace of decline in the Aussie in the last three or four weeks at times got excessive,” he said. Mr. Rennie says the Australian Dollar could climb to as high as US$0.9800 and likely won’t fall below recent lows.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9613 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7205 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6115
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0402<
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3878
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8413 >