The Pound to Australian Dollar exchange rate is 0.365% higher with 1 GBP = 1.5338 AUD.
The US Dollar to Australian Dollar is 0.180% higher with 1 USD = 0.9467 AUD.
The price of gold fell sharply on Friday, reflecting diminishing demand for Australian assets. There was further bad news overnight as monthly home loans data showed a surprising contraction (a ten-year low), probably down to the country’s high borrowing rates.
Barclays Capital say that it looks as though the Reserve Bank of Australia could put back a rate hike pencilled in for June, such news is bearish for the outlook of the Australian Dollar.
"In terms of local events, wages data will be the main focus and our economists expect wage growth to remain strong at 4% y/y, which would keep the pressure on the RBA to restart raising rates. Last week's soft employment reading and potential contraction in Q1 GDP will likely stay the RBA's hand in June," say BarCap.
A weekend note from Deutsche Bank task a look at the Australian Dollar and New Zealand Dollar:
"We continue to see AUD as particularly vulnerable potentially to concerns over policy tightening in China given Australia’s
strong trade links with China and the common use of AUD as a “China play”, so the persistence of inflation in China remains
an ongoing negative.
It's not all bad though says Duncan Higgins, an exchange rate analyst at Caxton FX:
"Nonetheless, positive comments from a Chinese official indicating that the Asian economy’s annual growth will average at 9% over the next 5 years have limited the aussie’s downside. The latest RBA meeting minutes will be released overnight, and investors will be looking for clarification of the central bank’s interest rate policy. Currently trading sideways at 1.53, the aussie could come under further pressure until we see a conclusion to the eurozone debt problem."
Last Updated ( Monday, 16 May 2011 10:04 )
