The major currency of Australia, Australian Dollar went down to its lowest value in 2013 as the retail sales data of this Asia-Pacific country dropped unexpectedly for a 3rd straight month. Therefore, the speculations are currently rife that the Reserve Bank of Australia will make interest rate cuts in the next month.
Australia Dollar, also known as Aussie, went down against the major peers even on yesterday as the Central Bank left the cash rate at half century low figure. Central Bank also announced that inflation outlook can afford the scope of easing the policy further. Its New Zealand counterpart, known as New Zealand Dollar or Kiwi reached its strongest level since July, 2010 against Aussie, thanks to positive reports in the country. Apart from that, the currency was also helped by the fact that the whole-milk power prices increased.
Callum Henderson, the Global Head of Currency Research Department of Standard Chartered Plc., stated that the retail numbers are currently on the weaker side. He commented that many investors feel that the policy makers will go for further easing right in the 2nd half of 2013.
The Aussie has plummeted by 0.3% against USD and is currently at $1.0356. Today, at one time, it touched $1.0342, the lowest figure since 25th December, 2012, however, jumped up a bit at later time. Against Yen, it is currently priced at 97.11 Yen, after experiencing a slump of 0.2%. Only on yesterday, it soared high to 97.44 against Yen, marking the best figure since August, 2008. However, against the Kiwi, it declined by 0.3% and is currently at NZ$1.2263.
Kiwi, on the other hand, is at 84.45 US cents currently. After touching the highest value since July, 2008, Kiwi has soared 0.1% higher against the Yen and is at 79.19 Yen now.
Australian retail sales went down by 0.2% in December from November, capping the longest streak of decline in last 13 years, as reported by the Statistics Bureau. Incidentally, economists predicted the same to increase by 0.3%. The yield on the 10-year bonds of Australia jumped up by 3 basis points and is at 3.52% now.
For New Zealand, the milk powder delivery rate increased by 5.8% and the 2-year swap rate is currently at 2.93%. Incidentally, swap rate is a fixed payment which is made so that a floating rate can be received.