Although the ‘Aussie’ strengthened from an 11-month low against the US Dollar ahead of Australia’s national budget announcement, the South Pacific currency dipped in its aftermath.
The Australian Dollar exchange rate was trading in the region of 0.9928 against the US Dollar as of 12:15 GMT
The ‘Aussie’ declined against peers including the US Dollar and Euro after Australian Treasurer Wayne Swan stressed the negative impact a strong local currency is having on the economy.
Swan stated: ‘Challenging global conditions and the high Australian Dollar have put huge pressure on the budget and led to a significant reduction in expected tax receipts. This government is providing a buffer to continued global uncertainty and giving the Reserve Bank of Australia more scope to cut interest rates should it want’.
Swan was also keen to highlight the difference between Europe’s approach to economic recovery and Australia’s, remarking: ‘To those who would take us down the European road of savage austerity I say the social destruction that comes from cutting too much, too hard, too fast is not the Australian way. The alternative, cutting to the bone, puts Australian jobs and our economy at risk.’
The Treasury has predicted that the nation’s unemployment rate will rise from its current level of 5.5 to 5.75 by the middle of next year.
In an attempt to preserve jobs Swan’s budget focused on spending on infrastructure, disability care, and education.
After the budget was announced one industry expert noted: ‘We’re coming into a difficult time for the economy. It is quite a difficult budget for the government, a sort of balancing act, we no longer have the luxury of an easy revenue flow coming through.’
Current Exchange Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9928 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7655 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6502 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2033 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0042 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3054 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.5381 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8304 >
(Correct as of 12:15 GMT)
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