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Metals bounce supports Australian dollar claw back

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GBP-AUD 20130722

FOR the Australian dollar, Wednesday this week will provide another round of manufacturing data being released from China. Strategists say that any hint of further slowdown in Chinese economic activity could send the recently struggling Aussie on the down slope again.

The last week was better for the Australian currency. After opening at a low, following an announcement from Chinese finance minister Lou Jiwei indicating that China was unlikely to receive any further positive fiscal stimulus this year, the Aussie strengthened slightly during the week against the major currencies, helped by a 1 percent jump in precious metals. Gold reached a one-month peak and the rising prices of iron ore, Australia’s top export earner, lent further support to the currency.

While coming off its midweek highs, the Aussie sustained some of the gain into this week’s opening as the sharp bounce in gold and bank interest-rate reforms in China underpin demand.

Composed by Anton van Teylingen & Dylan Goate

Exchange rates as of 12:26 GMT, 22 July 2013

GBP / AUD: 1.6622

EUR / AUD: 1.4267

USD / AUD: 1.0836

NZD / AUD: 0.8598

Note: The above exchange rates are based on “interbank” rates. If you want to transfer money to or from Australia then please register/login on our website, www.1stcontactforex.com, or call us on  0808 141 2335 for a live dealing rate. Make use of our Rate Notifier to send you alert when the Australian Dollar exchange rate reaches levels you are looking for.

[ Source: Australian Times ]


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