The Australian Dollar is trading higher against the Pound, Euro and US Dollar after comments made by Wall Street Journal reporter Jon Hilsenrath bolstered speculation that the Federal Reserve will likely keep its economic stimulus programme in place at its next policy meeting.
As a result the currency is headed for a second-straight gain against the ‘Greenback’.
Against the New Zealand Dollar the ‘Aussie’ remained close to a 4 ½ year low as traders boosted bets for the Reserve Bank of Australia to lower its borrowing costs when policy makers gather on August the 6th. Economists raised their expectations to a 76% chance that RBA Governor Glenn Stevens will lower rates by 25 basis points to 2.5%. That’s up from prior odds of a 65% chance.
“Wheeler’s comments regarding the need to remove monetary stimulus are producing a stronger-than-expected contrast with the RBA’s more subdued policy profile,” Adam Myers, the head of foreign-exchange strategy at Credit Agricole Corporate & Investment Bank. “Selling momentum in AUD/NZD should persist into next week.”
Speculation is rising that the Federal Open Market Committee will not announce a decision as to whether it will reduce its monthly bond purchases when it holds a meeting scheduled for July 30-31st.
“A lot will depend on how financial conditions evolve in the U.S. and whether the Fed looks to reduce its stimulus,” said Peter Dragicevich, a Sydney-based currency economist at Commonwealth Bank of Australia, the nation’s largest lender. “We expect it will at some point in 2013, but there is a risk that it delays it by a meeting or two. We don’t think the Aussie will fall too far.”
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9282 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6984 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6025 >
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1480 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0772 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4317 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6595
Correct as of 10:55 am GMT