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AUD weaker on RBA governor comments

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The Australian Dollar fell against all of its most traded peers on Tuesday, tumbling to a two-week low against the US Dollar after Reserve Bank of Australia governor Glenn Stevens said that the currency will be lower in the future.

During a speech in Sydney Stevens said that the currency wasn’t being supported by productivity and expenses in the local economy and that the nation’s trade was more likely to fall than rise due to the strength of the ‘Aussie’. Following his comments the currency fell.

“The foreign exchange market is perhaps another area in which investors should take care. It seems quite likely that at some point in the future the Australian Dollar will be materially lower than it is today.’ Stevens said in Sydney.

The RBA has been calling for the currency to decline as it is concerned that the strength of it will prove to be detrimental to the national economy as it emerges from a mining boom. The Bank is struggling with the effects of a currency which is around 10% higher than its average rate.

Expectations for the Central Bank to make a further cut to interest rates rose with investors citing there is a 42% chance that policy makers will opt to cut borrowing costs by May next year.

Against the US Dollar the currency could recover some of its losses if the Federal Reserve does confirm that it will delay tapering its monetary easing programme until next year, a move that will weaken the ‘Greenback’ and benefit commodity based currencies such as the ‘Aussie’.

Current Australian Dollar (AUD) Exchange Rates

The Australian Dollar/US Dollar Exchange Rate was trading in the region of: 0.9508

The Australian Dollar/Euro Exchange Rate was trading in the region of: 0.6907

The Australian Dollar/Pound Sterling Exchange Rate was trading in the region of: 0.5912

The Australian Dollar/New Zealand Dollar Exchange Rate was trading in the region of: 1.1519

The US Dollar/Australian Dollar Exchange Rate was trading in the region of: 1.0517

The Euro/Australian Dollar Exchange Rate was trading in the region of: 1.4477

The Pound Sterling /Australian Dollar Exchange Rate was trading in the region of: 1.6914

The New Zealand Dollar/Australian Dollar Exchange Rate was trading in the region of 0.8681

As of 12:45 pm GMT