The Aussie dollar exchange rates have declined sharply today as RBA minutes showed an August rate cut is back on the table.
The Australian Dollar exchange rates have failed to improve today, with losses against the pound sterling (-0.83pct), the euro (-0.31pct) and the New Zealand dollar (-0.21pct).
This is partly on account of prolonged fears among investors that the RBA will cut Australia’s interest rate in the near-term.
In addition, the ‘Kiwi’ has been aided by the fact that the NZ dairy auction for July has remained relatively unchanged instead of diving as had previously been seen.
The world’s biggest iron ore exporter, Rio Tinto, failed to expand production by as much as expected in the second quarter of 2016, although this is unlikely to be able to depress the weakened Australian Dollar any lower.
The company had stepped up production in order to benefit from rising prices, but fell slightly short of the target 88 million metric ton estimate collected by Bloomberg surveys, instead outputting 85.3 million tons.
The appeal of the Australian dollar exchange rates has taken a serious hit recently, with losses stemming from the most recent Reserve Bank of Australia (RBA) minutes for its July interest rate decision.
While the RBA, like all central banks, cannot guarantee that an interest rate cut, freeze or hike will take place; the latest minutes have certainly made an August rate cut a distinct possibility should the Australian economy fail to sufficiently improve before the start of the coming month.
In other Australian news, the ANZ Roy Morgan weekly consumer confidence index up to July 1th has fallen from 115.2 to 114.9.
Latest Australian Dollar/New Zealand Dollar Exchange Rates
On Tuesday the New Zealand Dollar to British Pound exchange rate (NZD/GBP) converts at 0.479
The GBP to NZD exchange rate converts at 2.086 today.
FX markets see the pound vs us dollar exchange rate converting at 1.233.
The live inter-bank GBP-GBP spot rate is quoted as 1 today.
Please note: the FX rates above, updated 23rd Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
Westpac Index due Tomorrow, Business Confidence Score out on Thursday
The remainder of the week for the Australian Dollar is not expected to see much high-impact domestic data come out of Australia.
The next notable announcement is due tomorrow morning, when the Westpac leading index for June is due along with the skilled vacancies outcome for the same month.
Looking further ahead, Thursday morning will bring the NAB business confidence printing for the second quarter, which previously came in at 4 points.
New Zealand Dollar (NZD) Exchange Rates Mixed Overall after NZ-ID Trade Deal
The value of the New Zealand Dollar has been uncertain on the whole lately, as notable gains have been seen alongside equally sizable losses.
The week so far has been quiet in terms of direct New Zealand domestic data, with most movement being generated by the price of milk and the strength of the US Dollar.
In international news, New Zealand and Indonesia have agreed to strengthen their economic links, via trade deals and mutual development of renewable energy sources.
NZ Dairy Auction due Today, RBNZ Economic Assessment Out Tomorrow
The near-future will bring the result of the New Zealand dairy auction for July; previously whole milk powder came in at $2062.
One of the major developments due this week will come tomorrow evening, when the Reserve Bank of New Zealand issues a surprise economic assessment.
This was only scheduled recently, which has sparked concerns among investors that hints of an early interest rate cut will be supplied.
Pound to Australian Dollar Forecast: RBA Minutes Provided Worrying Implications for Australian Interest Rates
Returning to the latest output by the Reserve Bank of Australia (RBA), the central bank’s most concerning passage in its minutes for investors came in the form of the statement:
‘The board noted that further information on inflationary pressures, the labour market and housing market activity would be available over the following month and that the staff would provide an update of their forecasts ahead of the August Statement on Monetary Policy. This information would allow the board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate’.
The next ecostats to come from Australia are due early tomorrow morning.
These will consist mainly of the NAB business confidence result for the second quarter.
In addition to this, influence could also be had on the ‘Aussie’ by the result of the Reserve Bank of Australia (RBA) foreign exchange transactions results.