The Australian Dollar has tumbled against the Pound, Euro and US Dollar after Chinese manufacturing and Consumer Price index data weighed heavily upon the currency.
China is Australia’s biggest trading partner and any signs of a slowdown in the Asian economy have a negative impact on the ‘Aussie’. According to HSBC Holdings PLC and Markit Economics, their manufacturing Purchasing Managers Index or China fell to 47.7 in July, down from the 48.2 level last month.
A level below 50 indicates contraction.
Australia saw the release of Consumer Price Index data which rose by 2.4% in the second quarter from a year earlier. The figure is still within the Central Bank’s desired target of 2% to 3%. Imported inflation however jumped sharply as it reflected the 13% decline of the Australian Dollar.
The Australian Dollar has traded above parity with the US Dollar for much of the past three years, putting a brake on inflation and allowing the Central Bank to cut interest rates seven times over the last year and a half to a record low 2.75%. After the release of the data the markets pared back their expectations of a further rate cut at the Central Bank’s August policy meeting.
“On the day, we seem to be at the low ends of the range with China-related concerns continuing to weigh on the Aussie,” said Callum Henderson, the global head of currency research at Standard Chartered Plc based in Singapore. “On a six to nine month view, we continue to expect the Australian Dollar to be lower.”
Current Exchange Australian Dollar (AUD) Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9205 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6954 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5989 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1578 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0863 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4380 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6695 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8636 >
Correct as of 09:55 am GMT
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