The Australian dollar fluctuated today, but was fairly resilient even as both global and domestic fundamentals were not supportive for the currency that is linked to commodities and economic growth.
The Australian Consumer Price Index grew 0.4 percent in the first quarter of 2013. This is compared to the traders’ expectations of 0.7 percent growth. Slower-than-anticipated inflation growth added to speculations that the Reserve Bank of Australia will resume interest rate cuts to bolster the economy.
Fundamentals outside of Australia were not supportive for the Aussie (as the Australian currency is often called) either. Yet the currency was surprisingly stubborn, refusing to retreat. Currently, it looks like it has given ground at last and is falling versus other majors.
AUD/USD fell from 1.0255 to 1.0246 and AUD/JPY dropped from 120.00 to 101.84 as of 4:58 GMT today. EUR/AUD went up from 1.2662 to 1.2679.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.