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Aussie Falls on Employment Drop

June 12, 2008 at 10:20 by Andriy Moraru

Australian dollarThe Australian dollar fell to its one month low against the U.S. currency as the jobs dropped in May for the first time since October 2006 and the traders became more confident that the central bank won’t be raising interest rate more.

The Aussie showed the worst performance today among the 16 most-traded currencies on Forex as the high interest rates may have already cooled down the economy enough and are now hurting it. The current policy interest rate of the Reserve Bank of Australia is 7.25 percent.

The employment market lost 19,700 jobs in May according to a report released today at 1:30 GMT. The overall unemployment rate remained at 4.3 percent in Australia.

AUD/USD rate lost more than 1 percent going down from 0.9480 to 0.9378 as of 8:15 GMT today. AUD/JPY declined today in spite of the weak yen — it went down from 101.28 to 100.81 with a minimum at 100.51. AUD/ZND also dropped today — from 1.2524 to 1.2441 with a low at 1.2423.

If you have any questions, comments, or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.

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