Loading...

Home pages - full list (A-Z)

Australian Dollar at Lowest Since 2016

#News #AUD #USD
Email share     Facebook     LinkedIn    Twitter

The Australian dollar really doesn’t have much going for it.

A 2.2 percent loss between Tuesday and Friday had the Aussie settling for the week at 71.9 US cents, which marked its lowest weekly close since December 2016, and it isn’t doing much better versus the euro, Canadian dollar, Swiss franc and Japanese yen.

Perhaps the last thing propping up the besieged Australian currency was a lingering hope that the Reserve Bank of Australia would raise interest rates sometime next year, but these hopes were dealt a serious blow on Tuesday after one of Australia’s “Big Four” banks, Westpac, made the decision to independently raise mortgage rates.

Westpac’s decision is likely to be copied by other Australian banks and will reduce the need for the RBA to increase Australia’s benchmark interest rate. It is the benchmark rate, not commercial lending rates, that are important for money market rates which in turn affect the Australian dollar’s value.

All eyes will now be on the RBA’s meeting on Tuesday, at which policymakers might sound more dovish.

Also on the economic calendar next week is Australian GDP data (Wednesday), for which last week’s awful quarterly capital expenditure figures don’t bode well. Expenditure fell in the second quarter by 2.5 percent, disappointing against the market forecast for growth of 0.6 percent and against first-quarter growth of 1.2 percent.

Given the prevailing environment, it would be of no surprise should the Australian dollar continue to weaken towards, and potentially below, the 70 US cents mark in the coming months.

 

Further Reading

 

Disruptors Challenging Australian Banks in Forex Price and Service: ACCC Report

Key Takeaways from the ACCC inquiry into currency conversion services. BestExchangeRates referenced among comparison sites playing an important role in customer awareness of the excessive currency margins charged by banks.

Last update: 11 Dec, 2019

AUD/GBP Between a Rock and a Hard Place – USD Strength

AUD/GBP versus AUD/USD and GBP/USD

Both the Australian dollar and British pound sterling have had a hard time of late caught between the rock of the China/US trade war and the Brexit hard place.

Last update: 27 Aug, 2019

Australia Cuts Interest Rates to Record Low

RBA Australian dollar AUD currency news and forecasts

The RBA has cut Australian interest rates to a record low of 1 percent in an effort to boost inflation. The Australian dollar is slightly stronger following the widely expected decision but is expected to lose 5–7 percent of its value before year-end.

Last update: 14 Aug, 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!