Loading...

Home pages - full list (A-Z)

Australia Cuts Interest Rates for the First Time in 3 Years

The Australian dollar remains stable in the high US$0.69s following the RBA’s decision on Tuesday to cut Australian interest rates to a record low of 1.25 percent.

#News #AUD #GBP #USD
Email share     Facebook     LinkedIn    Twitter
 

In the hours that followed Tuesday’s decision by the RBA to cut interest rates to a record low of 1.25 percent, the Australian dollar gyrated here and there, but was ultimately unchanged against the US dollar at levels in the high $0.69s, which shouldn’t be a surprise given that the cut was widely expected.

The quarter-point reduction in the cost of borrowing was the first in Australia in nearly 3 years and “will assist with faster progress on reducing unemployment and will help achieve more assured progress towards the inflation target,” the RBA said.

AUD to USD - 1 Week chart to 04 Jun
AUD/USD - 1 Week chart to 04 Jun

Tuesday’s cut is yet another marker of the dovish shift among central bankers globally. The Australian dollar’s 2 percent loss against the greenback since mid-April could have been far worse if not for recent speculation that the Fed might be the next central bank to signal a rate cut.

Dovishness at the Fed or elsewhere won’t, however, be enough to prevent further losses for the Aussie; not according to AUD forecasts by GSFM, ANZ, Capital Economics and Westpac, all of which see year-end AUD/USD rates closer to $0.65.

Barring an economic miracle, which must include a thawing of US-China trade tensions, interest rates in Australia have further to drop this year, with analysts split on whether one or two more cuts is in the pipeline.

 

Further Reading

 

Australians Swerve Thai Holidays with Exchange Rates in the Gutter

With AUD-THB at a 10-year low, Australians travelling this year to Thailand’s wildly popular resorts are facing holiday costs 50 percent higher than those paid in 2012. With exchange rates as they are, those in Oz are choosing better-value destinations.

Last update: 23 Jun, 2019

Canadian Dollar in the Spotlight After Surging to 16-Week High

Lifted by oil, economic data and the Fed, the Canadian dollar has soared against the US dollar to a 16-week high and has reached even more impressive milestones against the pound, euro and Australian dollar.

Last update: 20 Jun, 2019

Banks Charge Small Customers 25 Times More for FX, Research Shows

New research from the European Central Bank shows that banks charge smaller customers up to 25 times more for FX forward transactions and that those who fail to compare providers pay 14 times more for FX than those that do.

Last update: 17 Jun, 2019

  

Posted to: News

 
 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
 

Get a Better FX Deal when you Send and Spend Abroad.

 

Do NOT follow this link or you will be banned from the site!