AUDPD

The pound Australian dollar exchange rate is 0.07% higher with GBP/AUD at 1.4664, the pound New Zealand dollar exchange rate is 0.03% lower with GBP/NZD at 1.8936.

A surprisingly high Chinese inflation figure failed to weigh on the Australian dollar, which remains firm.

"High Chinese inflation (back up at 4.5%) reduces the scope for monetary easing and therefore weighs on the country’s growth outlook and demand for Australian commodities. Still, the aussie dollar marched on, with the market convinced that the spike in inflation will prove temporary, says a morning exchange rate note from the team at Caxton Fx.

AUD

 Despite a small bounce yesterday afternoon, when the AUD recorded a move close to USD1.0850, the AUD has failed to find any further support to break higher. Key resistance is just below the USD1.0900 level, and we'd need to see a break of this level to open the way for a move back towards USD1.1000.

The Reserve Bank's decision to leave official interest rates unchanged earlier this week has clearly increased the relative attractiveness of the AUD, particularly given the low levels of official interest rates throughout the rest of the developed world.

If the AUD continues to rally, and if we were to sustain levels above USD1.1000, the RBA may come under increasing pressure to cut interest rates to try and relieve some of the pressure on Australian exporters, as well as local businesses in manufacturing, tourism and retail who, on a combined basis, employ over two million workers.

Rates

	Australian Dollar	1	1.3558	1.3339	1.3279	1.3550	1.3347	1.3296
	Canadian Dollar	1	1.2639	1.2398	1.2338	1.2627	1.2410	1.2359
	New Zealand Dollar	1	1.0502	1.0292	1.0232	1.0490	1.0304	1.0253

AUD

Australian Dollar

1

1.3566

1.3347

1.3287

Forex Update

Australian Dollar

1

1.3493

1.3275

1.3215

Update Forex

Australian Dollar

1

1.3484

1.3266

Update Forex

DBS

1.3489

1.3271