<a href="http://www.hitsteps.com/"><img src="//log.hitsteps.com/track.php?mode=img&amp;code=8f721af964334fa3416f2451caa98804" alt="web stats" width="1" height="1">website tracking software

首页 -  了解我们 -  媒体报道 -  AUD Exchange Rate Suddenly Soared!

AUD Exchange Rate Suddenly Soared!


Reserve Bank of Australia (RBA) has just issued a statement that the pace of raising interest rates has finally stopped!


The exchange rate between AUD and CNY rose at the opening in April 4, with an astonishing magnitude. Panda believes that there are mainly the following reasons.


Pause Interest Rate Hike This Month


Just this week, Reserve Bank of Australia announced the monetary policy decision in April, and the interest rate hike was finally suspended!​


In its latest statement, RBA said that at the meeting, the Board decided to leave the cash rate target unchanged at 3.60 per cent and the interest rate on Exchange Settlement balances unchanged at 3.50 per cent.


Source: RBA official website


This decision follows a cumulative increase in interest rates of 3.5 percentage points since May last year.


The Board recognizes that there is a lag in the operation of monetary policy and that the full effect of this substantial increase in interest rates is yet to be felt. 


The Board took the decision to hold interest rates steady this month to provide additional time to assess the impact of the increase in interest rates to date and the economic outlook.


Source: 9 News


The statement also noted that global inflation remains very high, but it is moderating overall, although services price inflation remains high in many economies. The outlook for the global economy remains subdued, with below-average growth expected this year and next. 


The statement also mentioned recent bank failures that have caused a huge uproar in global economic markets.


The recent banking system problems in the United States and Switzerland have led to volatility in financial markets and a reassessment of the outlook for global interest rates. These problems are also expected to lead to tighter financial conditions, which pose additional headwinds for the global economy.


In addition, the latest statement also pointed out the effects of the interests rate hike on people's lives.


Australia's economic growth has slowed and growth in the coming years will be  expected to be below trend.


There is further evidence that the combination of rising interest rates, cost-of-living pressures and a decline in housing prices is causing a sharp slowdown in household spending. While some households have substantial savings buffers, others are suffering a painful squeeze on their finances.


On the other hand, the labor market remains very tight. The unemployment rate is at its lowest level in nearly 50 years and underemployment is also low.


Many companies are still having difficulties hiring workers, although some have reported an easing of labor shortages and a slight drop in the number of job vacancies. Unemployment is expected to increase as economic growth slows.


Source: 9 News


But Anneke Thompson, chief economist at CreditorWatch, says that the relieve for borrowers may be temporary.


“The decision will give the RBA another month to assess the upcoming data before inflicting more pain on Australian borrowers. Overseas, central banks in Europe and the United States continue to raise interest rates to combat inflation, even as banks in their jurisdictions came under pressure. The Australian economy is particularly sensitive to rising interest rates, more so than in the US or Europe because of the large number of borrowers who have adopted or are about to switch to variable rates.”


PropTrack senior economist, Eleanor Creagh, also believes that the RBA's suspension of interest rate hikes this month is leaving room for further increases in the interests rate next month.


Australian dollar soars.


In addition to the monetary policy decision of RBA, the Australian dollar exchange rate is also of great concern.


Just on the morning of April 4, the exchange rate of AUD against CNY suddenly changed greatly, with a sudden surge from the opening of 1: 4.573 to 1: 4.668.


Source: Sina Finance


After a sudden surge at the opening, the exchange rate of the Australian dollar against the Chinese yuan began to fluctuate, but mostly around 1:4.67, with some changes up and down.


Source: Sina Finance


The last time the exchange rate of the AUD against the CNY broke through 1: 4.66 was in early March this year. On March 7, the AUD/CNY exchange rate plummeted significantly, dropping directly from 1.4:67 to 1:4.58, which is very similar to the sharp rise in April 4.


Source: Sina Finance


As for the reason for the sharp rise in the exchange rate between the Australian dollar and the Chinese yuan at the beginning of trading, Australian media have also provided some relevant analysis, which is highly likely related to the US dollar exchange rate.


Source: abc news


The main reason for the surge in the exchange rate of the Australian dollar is actually the sharp decline in the exchange rate of the US dollar. Because the latest data shows that after the slowdown in US economic growth, the US dollar exchange rate plummeted in an instant.​


The Federal Reserve said it was ending its aggressive policy of raising interest rates, while the latest US manufacturing data index was released, showing a significant decline in US manufacturing activity in March.


The Institute for Supply Management (ISM) said that the US manufacturing index PMI fell to 46.3 points in March 2023, the lowest value since May 2020.


Compared to 4.77 in February, a further decline of 1.4. This is also the fifth consecutive month that the US manufacturing index PMI has fallen below the threshold of 50 points. This represents that the US manufacturing industry is in a state of contraction, and the new orders received by the US manufacturing industry are continuously decreasing.


Source: npr


Another reason for the decline in the US dollar exchange rate is that rising borrowing costs and rising inflation have reduced demand for goods normally bought through credit.


Also, the collapse of Silicon Valley Bank and Signature Bank in the United States has brought pressure to the financial industry.


Banks have tightened lending standards, which could make it harder for small businesses and households to get credit.


Based on comprehensive analysis, a series of reasons have led to a significant decline in the US dollar, and the direct impact of the fall in the US dollar is the soaring Australian dollar exchange rate.


Source: Sina Finance


Although the exchange rate rose sharply this time, it still did not reach the highest level this year, and in recent times, the exchange rate of the AUD against the CNY is also in a volatile upward trend.​


After the Reserve Bank of Australia announced the decision not to raise interest rates, the AUD exchange rate also appeared an instant dive. And the Australian dollar fell sharply against the Chinese yuan from 4.6694 to its lowest point of 4.6526.


Source: Sina Finance


The Australian dollar also took an instant tumble against the US dollar, dropping from 0.6788 to the lowest point of 0.6757.


Source: Sina Finance


Looking back at the beginning of this year, experts predicted that the exchange rate of the AUD against the CNY would break through the 1: 5 mark this year. It's unknown how the future development of the exchange rate of the AUD against the CNY.


The exchange rate market fluctuations are unpredictable, but timely understanding of the exchange rate changes can greatly facilitate your cross-border payment. Panda Remit can broadcast the exchange rate changes in real time and support the conversion between multiple types of currencies. Moreover, you can enjoy the preferential price below the market exchange rate and reduce the exchange rate losses, which is the best choice for your cross-border remittance.


About Us - Panda Remit

Panda Remit is a cross-border remittance online platform, which is committed to providing global users with safer, more convenient, reliable and affordable online cross-border remittance services. With user-friendly interface and advanced security features, Panda Remit is the best solution for anyone looking for a hassle-free way to make global remittance.


Panda Remit has the following features:


1. High safety degree - One of the key features of Panda Remit is its advanced security measures

All transactions are encrypted and monitored 24/7 to ensure the safety of your funds. What's more, Panda Remit uses state-of-the-art fraud detection technology to prevent unauthorized access from your account.


2. Convenient transfer environment - Panda Remit is equipped with currency calculator

The platform is available on Panda Remit official website or Panda Remit app, so that you can easily access your account and make transactions on-the-go. And users can transfer money in a variety of currencies,including US dollars, euros, HK dollars, pound, yen, etc,. Furthermore, it is also worth noting that Panda Remit provide 24/7 Chinese customer service, providing a familiar and intimate environment for overseas Chinese.


3.Simple operation process - Panda Remit has a user-friendly interface that makes it easy to navigate and use

Moreover, whether you need to pay bills or send money to friends and family in other countries, you just need to simply follow the operation tutorial provided by Panda Remit to create an account, link your bank account or credit card, and then you're ready to tranfer money globally. With just a few clicks, you can successfully send money to anyone, anywhere in the world you want.


4. Instant transfer - Panda Remit provides a quicker way to transfer money globally

Panda Remit is not only secure and convenient, but it is also fast. It allows for instant transfers between Panda Remit users, eliminating the need for waiting periods or processing times as much as possible. This feature is especially beneficial for people or businesses that require quick and efficient cross-border remittance.


5. Low handling fee - Panda Remit offers a range of exchange rates benefits to users

Panda Remit also offers competitive price compared to traditional remittance methods and other apps of the same kind. Thus, users can enjoy low transaction fees and competitive exchange rates and get high amount received when transferring money globally, which makes Panda Remit a cost-effective solution for individuals and businesses alike. Plus, the system would give coupons to first-time users.


In conclusion, Panda Remit provides a simpler and efficient online gloabl remittance way that offers a range of features and benefits to users. Nowadays, Panda Remit have opened global remittance service for more than 30 countries or regions worldwide, and helped users save nearly 100 million dollars in fees, which deeply recognized and trusted by millions of users around the world.


Panda Remit is the perfect solution for you to make cross-border remittance.

Please visit the Panda Remit official website or download the app, Panda Remit, for more detail information.