Aussie Falls on Prospect for Slower Pace of Rates Increase

The Australian dollar dropped against other most traded counterparts as the average borrowing costs suggest that the central bank may slow the pace of the interest rates increase.

The benchmark rate was increased for the sixth time from October and, while the policy maker are willing to slow the record pace of the rates increase, they yet may be urged to continue the interest rates increase to rein the inflation. The economy of China, the biggest trading partner of Australia, was growing with slower pace as the government tries to cool the economy, also weakening the Aussie.

AUD/USD dropped to about 0.9174 as of 10:16 GMT today after opening at 0.9259. EUR/AUD rose to 1.4305 after it opened at 1.4242.

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