Aussie Drops to 2012 Low - 9.5.2012

The Australian dollar touched today 1.0052, the lowest level since 29 December 2011 against the US counterpart after Australia’s Prime Minister Julia Gillard said yesterday that next year’s budget surplus will give the central bank maximum room for interest rates moves, according to the goals of monetary policy. Yesterday the nation’s Treasurer Wayne Swan presented the budget for the fiscal year starting on July 1, with the underlying surplus to be achieved at 1.54 billion Australian dollars and a historical cut in expenditures. The Reserve Bank of Australia cut interest rates to 3.75% at its policy meeting on May 1 and may keep on decreasing borrowing costs in the following months. In May the aussie has already lost more than 4% versus the greenback.