Although last week’s less-than-impressive domestic employment report weighed heavily on the ‘Aussie’ for the latter half of the week, the Australian asset staged a comeback during the local session.
The Australian Dollar exchange rate was trading in the region of 0.5873 against the British Pound as of 10:20 am GMT
With higher risk currencies like the Australian Dollar gaining support from the news that the US and Russia had reached an accord regarding how to remove the threat of Syria’s chemical weapons, the ‘Aussie’ strengthened against peers like the Pound.
The South Pacific currency also advanced on the US Dollar, hitting a three-month high against its North American rival, after one of the favoured contenders for the post of Chairman of the Federal Reserve bowed out of the race.
Former Treasury Secretary Lawrence Summers had President Barack Obama’s backing to take over the influential role after current Chairman Ben Bernanke steps down next January.
As Summers is a proponent for reducing quantitative easing, unlike the other main contender Vice Chairman Janet Yellen, his withdraw from contention has rather dented the prospects for Fed tapering.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a high of 0.5903
In response to the news currency strategist Robert Rennie noted; ‘I’m a bit more upbeat on the Aussie purely from a Dollar point of view. What you have to read into the market’s move is that this is a combination of Summers and Syria, but it’s a risk positive story.’
During Australasian trading the ‘Aussie’ advanced by 1 per cent on the US Dollar, hit a high of 0.5903 against the Pound and achieved 92.20 against the Yen.
During the European session AUD/GBP movement may be limited due to an absence of significant UK news.
Ahead of the publication of minutes from the Reserve Bank of Australia’s latest policy meeting, fluctuations in the AUD/USD pairing could occur in response to US industrial/manufacturing production figures.
The ‘Aussie’ could lose ground against its most traded peers in the aftermath of the RBA minutes’ release if they intimate that an additional rate cut could be implemented before the end of the year.
According to currency strategists, ‘While the September statement again excluded an explicit easing bias, we expect a weak easing bias to come through [in the minutes]’
While the Federal Open Market Committee’s policy meeting will be the main driver of currency market volatility in the days ahead, Australian data (including Wednesday’s conference board leading index) could trigger ‘Aussie’ movement.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9366 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7001 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5873 >
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1410 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0680 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4266 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7019 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8775 <
Correct as of 10:20 am GMT