Exchange Rates
  • The pound sterling to Australian dollar exchange rate is unchanged on last night's closing level; GBP/AUD is at 1.6800.
  • The euro to Australian dollar exchange rate is 0.07 pct down on last night at 1.4188.
  • The Australian dollar to US dollar exchange rate is 0.09 pct higher at 0.9535.

NB: Please be aware that the above are spot market quotes to which your bank will affix their own discretionary spread. Please note, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please learn more here.

RBS minutes give Australian dollar fresh impetus

The Australian dollar (and New Zealand dollar) ended the day slightly higher against the greenback but both currencies gave up a large part of their earlier gains after budget talks broke down in Washington.  

"At one point today, the Australian dollar was trading at its strongest level since June but by the end of the North American session, AUD was only slightly higher against the greenback.  The earlier enthusiasm for the currency was driven by neutral RBA minutes," says Kathy Lien at BK Asset Management.  

The RBA "noted that there is a substantial degree of policy stimulus and that it will continue to gauge its effects. For now the RBA noted that the rate cut is not imminent, but it left open the possibility for further rate cuts if needed."  

Despite the risks posed by U.S. fiscal uncertainty, the central bank remains cautiously optimistic as the pressure from low confidence and the strong currency eases.  

Lien does however caution, "Investors may be wary about owning U.S. dollars but the risk that a U.S. default poses to the global economy also encouraged liquidation out of high beta currencies."