The Australian Dollar is on course to make its longest run of weekly declines in 28 years after Reserve Bank of Australia governor Glenn Stevens once again talked down the currency.
The Australian Dollar also fell further against the US Dollar and Euro after Governor Stevens said that he wanted the currency to fall lower and that a weaker currency would be preferable to lower interest rates.
“Comments from the governor to the media this week continue ongoing, concerted RBA campaigns to ‘jawbone’ the Australian dollar lower,” said the chief economist at HSBC, Australia, based in Sydney. “While it is clearly not the only factor at play, it is arguably having some impact, with the Australian Dollar trading lower,” he said.
The GBP/AUD rate could push to as high as 2.00 if next week sees the Pound once again resume its upward trajectory.
“If it can consolidate above 1.800, a move towards 2.00 looks probable in coming weeks. Admittedly, cable has failed to move dynamically higher since breaking through key resistance levels abound 1.63 recently. However, we are of the view that the pound can still gain further. Whilst sectors of the UK housing market are very strong and the activity indicators are showing signs of a more broad based recovery in output, the economy is still operating below potential and GDP has not yet recovered to 2008 peak levels,” said economists.
Friday saw the Pound drop against the majority of its peers after speculation increased that the UK currencies recent increases have been excessive. Sterling fell despite the publication of data which showed that house prices hit a new high and as Construction output improved more than economists had forecasted.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.8923
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6501
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5483
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.0858
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5382
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.8235
Correct as of 12:45 pm GMT