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Thursday, July 29, 2010

Aussie Falls as Low Inflation Promises Unchanged Interest Rates

Australian dollarThe�Australian dollar fell today for�a�second day against its U.S. counterpart as�the�in�inflation rose slower than expected, fueling the�speculation that the�central bank would keep the�interest rates unchanged.

The�consumer price index rose 0.6 percent in�the�June quarter 2010, compared with the�rise of�0.9 percent in�the�March quarter 2010. The�forecasts promised the�1.0 percent growth. There are not many reasons for�the�Reserve Bank of�Australia to�raise the�interest rates next week, though the�bank still may raise the�rates later this year. The�Aussie will probably decline to�$88.50 in�the�near term.

AUD/USD declined from 0.9022 to�0.8954 today as�of�9:29 GMT after falling as�low as�0.8922.

If you want to�comment on�the�Australian dollar�s recent action or�have any questions regarding this currency, please, feel free to�reply below.

Earlier News About the Australian Dollar:

This entry was posted on Wednesday, July 28th, 2010 at 11:29 am and is filed under Australian Dollar. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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