Australian Dollar Fell Below Parity - 14.5.2012
The Aussie dropped below parity against the greenback for the first time since 20 December 2011, touching 0.9995. The currency therefore has already lost in May more than 400 points or more than 4%, as the Reserve Bank of Australia cut the target cash rate from 4.25% to 3.75% on May 1 and as policy makers signaled that further easing may be also possible. The pair traded in the morning hours at 0.9995-1.0034 after the data from Australia showed home loans increased in March by 0.3% and before the central bank releases the minutes of the latest policy meeting tomorrow.