The Australian Dollar has weakened against Sterling and many of its most traded peers to trade around the £0.60 mark after the Japanese share market slid, leading to a dent in the popularity of higher-yielding currencies.
The ‘Aussie’ declined after losing momentum as the Japanese Nikkei Index declined by 3.32%. As a result the Japanese Yen strengthened as the falling share market combined with the poor stock market performances of Honda and Toyota.
“It can give the market a reason to sell the Aussie, the Aussie versus the US Dollar,” Easy Forex currency dealer Tony Darvall said.
The Australian dollar is expected to trade above 92 US cents until Thursday morning, Australian time, when the US Federal Reserve finishes its two-day policy meeting.
“It’s unlikely to go above 93 and likewise it’s going to find support in the lower 92 area,” Mr Darvall said.
Also weighing on the currency are the ongoing expectations by traders that the Australian Reserve Bank will cut interest rates in August. Those expectations were bolstered by comments made by Reserve Bank board member John Edwards. He said that the federal government should avoid deep spending cuts.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9235 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6959 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6004 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1439 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0827 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4369 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6653 >
Correct as of 09:40 am GMT
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