The Australian Dollar managed to recover some ground against the Pound and edged higher against the US Dollar as concerns over the US budget and weaker economic data out of the world’s largest economy caused investors to be wary.
Concern is mounting that the US Federal government may close as a deal on funding seems far off. Following the Federal Reserve’s decision to not begin tapering its monetary easing programme earlier in the month the traders of riskier currencies such as the ‘Aussie’ have been in something of a holding pattern as they wait and see what the Fed announces next. Many are speculating that a cut could occur in October.
The ‘Aussie’ received support meanwhile after the Reserve Bank of Australia said that the nation’s banks remain in good health and urged them to keep loan standards as record low interest rates boost demand for investment.
Earlier in Thursday’s session the currency received a further boost after Japan revealed that it may cut corporation tax in the near future. The news improved risk sentiment across Asia to the benefit of the Australian and New Zealand currencies.
“That helped the Nikkei surge higher and helped the whole Asian region go into risk-on mode, the Aussie is well situated here to have a little attempt higher because risk sentiment has improved a lot and there’s been a lot of Aussie/Yen buying,” said currency dealer Tony Darvall.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9393 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6955 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5842 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0645 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4377
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8823 <
Correct as of 09:45 am GMT