A rocky week for the Australian Dollar was marked by the dramatic new quantitative easing program initiated by Japan.
The Aussie currency had started the post-Easter week stronger against the greenback while weakening slightly against the British Pound. Tuesday’s Reserve Bank of Australia announcement to leave the official cash rate unchanged steadied the market.
However, when data released on Wednesday showed that the nation’s trade deficit narrowed in February, the Aussie climbed against the major currencies. The rise continued when retail and building data beat expectations.
Late on Thursday though, Japan – one of Australia’s largest trading partners – unveiled fresh stimulus measures led by a massive new quantitative easing program for the Yen. Subsequently, by Friday the Aussie Dollar was falling sharply against the major currencies, being dragged down as traders dumped the Yen.
This week, the Australian Dollar started the week lower, with weakness in the Yen still dominating market trading.
Also on Monday came the announcement by Julia Gillard, while on visit to China, of a new currency agreement with Australia’s biggest trading partner. The deal allows the Aussie Dollar and Chinese Yuan to be directly traded. Australia will be just the third country with such an arrangement with China.
By Trevor Brewer of 1st Contact Money Transfers
Exchange rates at 08:45 GMT, 8April 2013
GBP/AUD: 1.4761
EURO/AUD: 1.2514
AUD/USD: 1.0385
AUD/NZD: 1.2305
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 ]
