The Australian Dollar has once again weakened to fall to its lowest level since 2009 against the Pound and fell against all of its major peers including the US Dollar and Euro.
The currency was softened by data which showed that the total value of trade between Australia and China, its biggest trading partner, declined for the first time in five months. Yesterday’s weaker than expected services PMI data out of China also hurt the currency as well as other commodity based currencies including the Canadian and New Zealand Dollars.
The currency was weakened after speculation rose that last week’s surge towards the 90 US cents level was overdone after traders increased their bearish bets to the highest level in close to four months. It was the first time the ‘Aussie’ has fallen against the Dollar in four days.
The currency was unable to find support despite the release of data which showed that the nation’s overall trade deficit narrowed in November.
“We expect Australia’s trade balance to shift into surplus over the course of 2014 as resource exports pick up and capital imports decline,” said Dylan Eades, economist at ANZ Bank.
News of rising business optimism also failed to drive gains in the currency.
According to the Australian Bureau of Statistics the country posted a seasonally adjusted trade deficit of $118 million, down from the $ 358 million shortfall seen in October. The figure was also a lot lower than the $400 million deficit expected by economists. Investors chose to ignore the report.
The ‘Aussie’ weakened as expectations remain high that the Australian Central Bank will continue to talk down the currency’s value.
“We’re looking for the Aussie to depreciate through the year,” said Emma Lawson, a senior currency strategist at National Australia Bank Ltd. in Sydney. “We’re looking for the RBA to ease policy further.”
Current Australian Dollar Exchange (AUD) Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.8917 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6547 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5443 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.0779 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1213 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5270 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.8368 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9277 >
Correct as of 09:35 am GMT
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