With domestic and global concerns weighing on the ‘Aussie’ and the odds of the Reserve Bank of Australia cutting rates increasing; the currency has recorded a pretty long run of weekly declines against the New Zealand Dollar.
The Australian Dollar exchange rate was trading in the region of 1.2037 against the New Zealand Dollar as of 09:50 am GMT
In fact, after depreciating for seven consecutive weeks the Australian Dollar is in line to record its longest stretch of weekly declines against the ‘Kiwi’ since 2001.
The ‘Aussie’ fell against the majority of its most-traded rivals during the Australasian session as the AiG Performance of Services Index slid from 49.6 in March to 44.1 in April. The decline takes the gauge further away from the 50 mark dividing growth from contraction.
A separate report outlined a 0.1 per cent increase in Australian producer prices in the first quarter of 2013.
The Australian Dollar was also adversely affected by a 1.1 point drop in China’s non-manufacturing PMI.
In light of recent domestic data, global developments and the action taken by other major central banks, investors are upping bets that the Reserve Bank of Australia will issue a rate cut when it meets next week.
However, some economists believe that the central bank will hold off for the time being.
As one Westpac economist commented: ‘The decision is likely to be a closely run event since we think the case for another cut has now been made. However, with rates at historical lows, we think the RBA board will be cautious and decide to wait another month before moving.’
The ‘Aussie’ could fluctuate in the hours ahead as a result of US employment data. Economists have forecast that the US Labour Department will announce a 140,000 gain in non-farm payrolls in April. However, the previous month’s figure disappointed expectations (coming in at an increase of just 88,000) and if a similar situation should occur today it could inspire market volatility.
Current Australian Dollar (AUD) Exchange Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 1.0249 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7811 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6590 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2037 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9762 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.2774 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.5169 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8310 >
(Correct as if 09:50 am GMT)
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