The Australian Dollar also known as Aussie traded 0.1% from its highest value within the last 2 months. Traders pared the bets on further decrease of interest rates by the Reserve Bank. Glenn Stevens, the Governor, did not address the monetary policy in the comments published on today either.
Incidentally, Aussie has surged ahead against most of its major counterparts during this month after swaps indicated that there is 14% probability that the 3% benchmark of the country will lower further when the policy makers will sit together on 2nd April. Aussie’s New Zealand counterpart, known as New Zealand Dollar or Kiwi, was at 0.3% from the highest within last 30 days after the country reported a trade surplus for last month, quite unexpectedly.
According to the Senior Foreign Exchange Manager of Velocity Trade Ltd., Matt Cramer, markets are not expecting any sort of easing from the Reserve Bank of Australia and this is a positive factor for Aussie. Matt added that Aussie has been continuously bought over the last few days and the speech that Stevens gave had very little impact on the currency.
Aussie is currently at $1.0466. Only yesterday, it reached to $1.0480, the best value since 24th January. Against Yen, it was unchanged at 98.56. On the other hand, Kiwi was more or less unchanged against USD at 83.54 US Cents. Yesterday, it was trading at 83.71 at one point of time, the biggest value since 25th February. Against Yen, Kiwi is currently at 78.67. On today, the trade-weighted index of RBA’s Aussie increased to 79.3. This level was last experienced in March, 2012, the highest since 1985. On the other hand, the MSCI Asia Pacific Index of stocks experienced a decline of 0.2%.
Over the next 12 months, many traders feel that the Reserve Bank of Australia will lower the benchmark rate by 15 basis points. On 1st March, it was estimated that in a year, the benchmark rate will go down by 46 basis points, as far as an index published by the Credit Suisse Group AG is considered.
Incidentally, Stevens, the Governor of RBA stated the current bailout deal for Cyprus after reconstruction, looks better than what was proposed initially and it is expected that the European authorities will stay case specific on their quest to come out of this crisis.