The Australian Dollar has softened against the Pound and slipped from a two-week high against the US Dollar as once again the markets get jittery over the ongoing uncertainty regarding the future of the US Federal Reserve’s quantitative easing programme.
In local trading the ‘Aussie’ hit a two week high against its US relation and extended a week-long rally that began after the Australian Reserve Bank signalled that it may not make further cuts to interest rates.
Australian traders are turning their attention to the upcoming September 7th elections that will see Prime Minister Kevin Rudd go head to head with his rival Tony Abbott. Uncertainty over the elections outcome has also contributed to the currency’s softening.
All eyes are now cast on Tuesdays release of the much-anticipated Pre-election Economic and Fiscal Outlook (PEFO) on Tuesday – a review of the current state of budget and economy that is free from government interference. The report will give a clearer and independent view of the state of the nation’s economy.
The ‘Aussie’ may have seen a brief rise in recent weeks but many economists are predicting a return to decline with some predicting that it will take significant losses by the end of the year. The Australian Dollar is also more than likely to come under heavy pressure once the US Federal Reserve begins to taper its monetary easing programme.
“Looking ahead, the next three months are also fraught with risk, including the likely commencement of Fed tapering and a seasonal dip in iron ore prices later in the third quarter” said UBS currency strategist Gareth Berry.
The Reserve Bank of Australia forecast last Friday that the economy would grow by just 2.25% in 2013, well below the country’s long-term average growth rate of around 3.25%.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9152 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6881 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5917 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1444 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1092 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4531 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6898 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8737 <
Correct as of 09:45 am GMT
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