The Australian dollar fluctuated today, heading for a first weekly loss against the US dollar since September, after the Reserve Bank of Australia cut its economic forecast, leading to the speculation that the central bank will decrease the interest rates on its next monetary policy meeting.
The RBA released its economic outlook today and it was less optimistic than the previous one. The central bank predicted the economic growth will be 4 percent in the 12 months to June 30, 2012, compared with its previous forecast of 4.5 percent. The inflation is expected to rise 2 percent, down from 2.5 percent in the previous estimate. The main reason for the downward revisions was the negative developments in the USA and the Eurozone that have a negative impact on the
AUD/USD was near its opening level of 1.0400 today as of 11:59 GMT, following the drop to 1.0363 — the daily minimum. AUD/JPY was also near its opening (81.16) after falling to 80.83.
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