The ‘Aussie’ Dollar has rallied against the Pound, Euro and US Dollar after the Reserve Bank of Australia cut interest rates to an all time low-level of 2.5%.
The Australian Dollar has rallied by 0.82% against the Pound, 0.89% against the US Dollar
Normally such an announcement would send the currency tumbling but the currency rallied because the rate was widely expected by economists. The rally took many traders by surprise with record numbers having sold the currency just before the cut was announced after they expected the currency to weaken on the news of the cut.
“Everyone would have expected the Aussie Dollar to drop due to the interest rate announcement today, but we’ve seen the currency rally simply because it was a 100% expected announcement.
‘All of the small to mid-tier traders think the Aussie dollar is going to drop on the announcement but all the smart money and the big money has already been short on the Aussie dollar for the last few weeks and they’re just simply looking for an opportunity to buy it back up.
‘The average punter thinks it’s going down, the smart money knows it’s already priced in. There would be a hell of a lot of small to medium sized traders right now licking their wounds big time,” said LTG GoldRock director Andrew Barnett.
The currency’s rally is likely to be short-lived however after the RBA hinted in a statement that it would like to see the Australian Dollar weaken further to help re-balance the country’s economy.
The statement said; “It is possible that the exchange rate will depreciate further over time, which would help to foster a re-balancing of growth in the economy.”
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.8990 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6777 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5851 >
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1417 –
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1123 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4754 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7089 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8758 –
Correct as of 09:40 am GMT
Comments are closed.