Australian Dollar’s Appreciation May be Slowed

The Australian dollar declined as the minutes of the central bank policy makers’ meeting suggested that there will be the pause on the increase of the interest rate and as the global markets remain sluggish because of the European debt crisis.
The Reserve Bank of Australia may keep the interest rates at the current 4.5 percent level as the policy makers think that the borrowing costs are at the average level. As the investors are attracted to the region by the high interest rates the pause on the increase of the rates may halt the appreciation of the currency.
The woes of the Europe continue to influence the global markets. The resulting shift of investor sentiment to the risk aversion shows its negative impact on the higher-yielding currencies such as the Aussie.
AUD/USD closed at 0.8772 after opening at 0.8848. EUR/AUD closed at 1.4126 after it opened at 1.3950.

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