Australian Dollar weakens due to speculation that a report released tomorrow will show the lowest inflation rates in three years, which may keep the Reserve Bank oF Australia (RBA) of another possible interest rate hike. The RBA raised borrowing rates three times in 2006, to 6.25 percent, which is 1 percent higher than the U.S. and 6 percent higher than Japan. The Reserve Bank of Australia will review current interest rates on February 6 and will make its decision in the next day.
In the foreign exchange, the Australian Dollar was worth 78.81 U.S. cents this morning in Sydney in comparison to 78.87 U.S. cents in late Asian trading yesterday.
If you have enjoyed this post please feel free to Subscribe to the Free Forex Trading HQ Newsletter.
We recommend trading forex with Easy-Forex.
