The Australian Dollar fell after a government report showed a slower than expected inflation rate, effectively reducing the chance of an interest rate rise by the Reserve Bank of Australia. This showcased the biggest fluctuation of any of the major currencies today and was the biggest fall in seven weeks for the local currency.''This puts a dint in the short-term strength of the Australian dollar,'' said Tobias Davis, senior currency dealer at Custom House Global Foreign Exchange in Sydney. ''With consumer prices like that, we will see the RBA hold in May.''
In the foreign-exchange, the Aussie Dollar fell as much as 0.8 percent to 82.57 U.S. cents. Before the report, the Dollar was worth 83.28 U.S. cents. In the past few weeks, the Australian Dollar has been experiencing 17 year highs due to previous interest rate hike speculation.
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