The Australian Dollar is trading firmer against the Pound and reached a four-month high against the US Dollar after it found support from an increase in commodity prices and expectations that the Australian Reserve Bank has finished cutting interest rates for the foreseeable future.
The price of Iron ore, Australia’s biggest export has remained resilient despite the increase in the world’s supply. The demand for iron ore is also being bolstered by the Chinese, Australia’s biggest trading partner, as the world’s second largest economy sees robust activity in its steel industry.
Also supporting the ‘Aussie’ is the increased expectation that the Reserve Bank of Australia will refrain from making any further interest cuts this year. Comments made last week by the RBA suggested that the Central Bank is in no hurry to deliver new interest rate cuts, boosting the currency.
Paul Bloxham, chief economist at HSBC Australia, said evidence is growing that record-low interest rates are starting to gain traction, boosting areas of the economy such as housing construction as well as business and consumer confidence.
“Inflation is expected to be low enough that the RBA could consider cutting rates. But, at the same time, the cash rate is already low, monetary policy is gaining traction in the housing market, and confidence is lifting. The rise of the Australian Dollar over the past two months will worry policy makers, but not overly given the gains are being supported by better Chinese data,” Mr. Bloxham said.
Current Australian Dollar Exchange (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9673
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7075
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5981
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1427
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0337
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4133
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6719
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8751
Correct as of 09:45 am GMT
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