Aussie Declines vs. Greenback & Euro

The Australian dollar fell against its US counterpart as the employment in the US improved. The currency also slipped versus the euro on the speculation that the European Central Bank will increase the interest rates before the Reserve Bank of Australia.

ECB President
Jean-Claude Trichet signaled that the central bank is ready to raise the interest rates. At the same time it doesn’t look like the RBA is ready to do the same. The International Monetary Fund said that it’ll likely cut Australia’s growth forecast. The Australian currency also slid as Prime Minister Julia Gillard spoke about the negative effect of the stronger currency on the economy of the country.

The Aussie declined versus the US currency as the employment, possibly the main negative factor slowing the US economy, improved. The US non-farm payrolls expected to show the increase by 191,000, compared to the previous reading of just 36,000.

AUD/USD traded near 1.0135 today as of 7:03 GMT after it dropped yesterday from 1.0167 to 1.0145. EUR/AUD traded at 1.3765 after yesterday’s advanced from 1.3632 to 1.3766.

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