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AUD remains weaker against major peers as commodity currencies fall

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The Australian Dollar has weakened against the majority of its peers including the Pound, Euro and US Dollar as concerns over a slowdown in the global economy sent investors seeking shelter in the safer, lower yielding currencies.

The main cause for the ‘Aussie’s’ decline on Thursday was increasing expectations that the Chinese Central Bank is leaning toward tightening its fiscal policy, dampening prospects for economic expansion in the world’s second largest economy. Weaker-than-expected data out of the Eurozone and the USA also did little to allay concerns over a global slowdown.

The currency briefly firmed against a number of its peers early in the session after manufacturing activity data out of Australia’s biggest trading partner, China showed that manufacturing activity expanded at its strongest pace in seven months in October. The HSBC preliminary PMI report came in at 50.9, beating September’s figure of 50.2, and the highest increase recorded since March.

The currency also found some support from comments made by the Deputy Governor of the Reserve Bank of Australia. Philip Lowe told a business conference that the Australian economy is on track to no longer rely on the resources industry to power its growth.

“Together, a lower value of the Australian Dollar, an improvement in business confidence and low interest rates provides the basis for our outlook of a gradual lift in the non-mining economy over the next few years” Mr Lowe said.

Disappointing PMI data out of Europe added to the sense that the global economy is on the verge of a slowdown. France recorded a decline in its services and manufacturing sectors and Germany saw its private sector expand at its slowest pace in three months. Economists lowering their forecasts for the US economy did little to put investor nerves at ease.

Current Australian Dollar (AUD) Exchange Rates

The Australian Dollar/US Dollar Exchange Rate was trading in the region of: 0.9625

The Australian Dollar/Euro Exchange Rate was trading in the region of: 0.6981

The Australian Dollar/Pound Sterling Exchange Rate was trading in the region of: 0.5945

The Australian Dollar/New Zealand Dollar Exchange Rate was trading in the region of: 1.1494

The US Dollar/Australian Dollar Exchange Rate was trading in the region of: 1.0388

The Euro/Australian Dollar Exchange Rate was trading in the region of: 1.4323

The Pound Sterling /Australian Dollar Exchange Rate was trading in the region of: 1.6820

The New Zealand Dollar/Australian Dollar Exchange Rate was trading in the region of 0.8700

As of 10:30 am GMT