THE Australian Dollar opened this week weaker than where we left it on Friday, swapping hands around 1.023. After a busy seven days of economic releases around the globe, this week will bring some relief to the currency with no major releases scheduled.
Last week, the Aussie took investors by surprise on opening, plummeting on Monday from an opening level of 1.0201 US Dollars to a low of 1.0114, its weakest point since July last year.
Tuesday saw the Aussie gain after figures showed that retail sales for the month of January unexpectedly climbed by 0.9 percent. The positive reading followed three consecutive months of falls. The RBA announced a decision to keep interest rates on hold at 3 percent, reiterating that it has room to cut further if needed.
Wednesday once again saw the Aussie stronger against its US counterpart, reaching its highest level in a week after domestic GDP figures came in on expected levels. Investors were spurred on following a growth reading which showed Australia’s economy expanded by 0.6 percent in the final quarter of 2012 taking the final year figure to 3 percent.
By Thursday the Aussie opened at 1.0238 against the US Dollar after positive economic releases throughout the US had strengthened the Greenback.
Dropping from an opening level of 1.0267 on Friday the Australian Dollar shed around one third of a US cent late last week with a slight return back into the Greenback also doing little to help the cause of the higher yielding asset. The medium-term range of 1.0150 – 1.0350 shows few signs of being broken, and longer-term continued signs of weakness in China as well as a rebound in the US are likely to weigh on the Aussie.
Composed by Ruth Laatz-Reineke of 1st Contact
Exchange rates at 07:38 GMT, 11 March 2013.
GBP/AUD: 1.4608
EURO/AUD: 1.2724
AUD/USD: 1.0225
AUD/NZD: 1.2474
Note: The above exchange rates are based on “interbank” rates. If you want to transfer money to or from Australia then please register/login on our website, www.1stcontactforex.com, or call us on 0808 141 2335 for a live dealing rate. Make use of our Rate Notifier to send you alert when the Australian Dollar exchange rate reaches levels you are looking for.
[ Source: Australian Times ]
