The Australian Dollar is trading beyond a four year low and is expected to fall further against the Pound and other peers as Tropical Cyclone Christine approaches the northwest coast of Australia.
Production of iron ore, the nation’s biggest export has been impacted by the storms imminent arrival after shipments of the commodity were halted due to high winds and deteriorating sea conditions. Offshore oil platforms were also shut as winds reached 124 mph.
The closure of the world’s largest ore-export terminal at Port Hedland near Perth is likely to heavily impact exports and will be seen as negative for the Australian Dollar. Australia is set to account for about 52 percent of global seaborne supply this year, according to Morgan Stanley.
Also weakening the ‘Aussie’ is the increased speculation that the US Federal Reserve will end its monetary easing programme in 2014 as the world’s largest economy continues to show improvement. As a result, against the US Dollar the currency is on track to make its biggest yearly loss since 2008.
“The big theme has been Fed tapering, with that set to continue into 2014, we’ll expect the Aussie to come under some further pressure over the next year,” said Janu Chan, economist at St. George Bank Ltd. in Sydney.
More positive data out of the US will send the ‘Aussie’ even lower and a PMI report for China is due for release on New Year’s Day which is expected to show a slight decline. Any negative news out of Australia’s biggest trading partner impacts the ‘Aussie’ so we can expect the currency to weaken further as the week progresses.
Current Australian Dollar Exchange (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0. 8863
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6445
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5377
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.0859
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1284
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5515
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.8602
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9209
Correct as of 10:00 am GMT
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