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AUD Down on Economic Outlook Revision

August 5, 2011 at 17:25 by Andriy Moraru

Australian dollarDespite today’s recovery against the US dollar, the Australian dollar continued its decline against the other currencies, following a release of the economic outlook by the country’s central bank.

The currency rose for the first day after six days of decline against the US dollar. It fell for the seventh day against the Japanese yen today and for the fourth day versus the euro. It was also the first bearish day against its neighbor currency — New Zealand dollar.

The Reserve Bank of Australia has cut its economic growth forecast for the 3 years ending 2013 by about 1 percent at its latest monetary policy meeting today. Although the extent of this outlook change isn’t too large, it pressed on the Australian dollar along with other factors, such as the weak macroeconomic data of recent and the global lack of confidence in the high-risk economies.

AUD/USD is up from 1.0449 to 1.0521 as of 17:22 GMT today; it has reached as low as 1.0374 earlier this day — the lowest level since April 6. EUR/AUD rose from 1.3481 to 1.3566, while AUD/JPY fell from 82.73 to 82.59 today. AUD/NZD decreased from 1.2563 to 1.2428.

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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