Australian Dollar Article List

A look at the state of the markets this morning shows:

The pound to Australian dollar exchange rate is 0.4 pct lower than seen at Monday's close at 1.5616.
The euro to Australian dollar is 0.6 pct lower at 1.3345.
The Australian dollar to US dollar exchange rate is 0.5 pct higher at 0.9678.

Please Note: The above quotes are taken from the wholesale spot markets - your bank will affix their own spread to these rates when passing on their retail offer. However, an independent FX provider will guarantee to undercut your bank; thus delivering you more currency. Please find out more here.

Australian dollar decline could see RBA hold back on cutting rates

Up until, two weeks ago the Aussie dollar had held firmly above parity with the greenback before being knocked down by a broadly robust U.S. dollar, a fall in commodity prices and signs of weakness in China – Australia’s biggest trading partner.

Stuart McPhee at Oanda says: "The fact that the Australian dollar has fallen more than 8 percent against the U.S. dollar from an April high could be reason enough for the Reserve Bank of Australia (RBA) not to cut interest rates again this year, say strategists."

“The RBA’s biggest concern recently has been that the Aussie dollar has been as high as it has been, so some depreciation of the Aussie dollar is going to make the RBA feel a lot more comfortable,” Paul Bloxham, chief economist for Australia and New Zealand Bank told CNBC Asia’s “Squawk Box.”

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Jeremy Cook at World First is not calling an end to the Australian dollar's decline based on interest rate cut expectations:

"We certainly expect the AUD to remain under pressure as the market continues to price in another rate cut by the RBA."

Pound and US dollar forecast to extend recent gains against Australian dollar

Vaughan Atton at UK Forex says:

"The Aussie continued its slide last week and was again the worst performing major currency. The differential between US and Aussie yields narrowed further as investors increasingly diversify out of the Aussie in anticipation of future FED/RBA monetary action.

"AUDUSD dropped to a low of just-under 0.960 last week. Interestingly enough, this level acted as major support exactly 12 months ago.

"The pair rebounded back over parity in 2012. Should 0.960 support fail to hold the pair could experience significant declines.

"Further losses against the US Dollar should also see GBPAUD push towards 1.60. While Sterling had a bumpy ride last week, GBPAUD managed to close higher for the 6th week in a row.

"Sterling/Aussie has softened to 1.5610 this morning as markets positioned after the Japanese monetary meeting minutes. Aussie releases are headlined by Building Approvals and Private Capital Expenditure data released on Thursday and expected to show improvements. Otherwise, broader risk movements are most likely to influence Aussie crosses this week.

"Sterling also managed its 4th consecutive weekly gain against the Kiwi Dollar. The Kiwi was dragged along by developments in Asia, falling commodities, and poor Chinese manufacturing data.

"On the data front, no Kiwi releases occurred overnight and nothing really of note is released until Friday when Business Confidence data is expected. The pair has softened to 1.8620 this morning."