After climbing by 1.6 per cent and hitting 0.9611 US cents over the course of trade yesterday the Australian Dollar was on course to record its first five-day advance against its US counterpart for six weeks.
The Australian Dollar exchange rate was trading in the region of 0.9607 against the US Dollar as of 10:15 GMT
The ‘Aussie’ benefited from both this week’s unexpectedly strong domestic employment report and speculation that the South Pacific currency’s significant decline has been too extreme.
Rebounding US stocks also supported interest in higher-risk assets like the ‘Aussie’.
According to one currency specialist: ‘The market’s been very short, but the fact that the Aussie couldn’t close a day below the key 93.80, 94 US cent level probably cleared a few things out. I think this could clean out a few more shorts and head up towards 98 US cents.’
The Australian Dollar later shed some of its gains as conflicting reports emerged regarding the likelihood of the Federal Reserve opting to taper stimulus in the months ahead. The Wall Street Journal stated that the central bank is likely to hold off issuing a rate increase, while other industry experts are anticipating that some more definitive hints could be dropped at next week’s FOMC meeting.
As foreign exchange strategist David Forrester notes: ‘We’re going to see just as much volatility next week, particularly leading up to the Fed meeting. The Aussie has been considered a big beneficiary of QE.’
The Australian Dollar dipped modestly to 0.9607
In other South Pacific news, the ‘Kiwi’ turned bullish against its peers and surged to 81.11 US cents after New Zealand’s performance of manufacturing index was shown to have leapt from a revised 55.2 in April to 59.2 in May – taking the level further away from the 50 mark which separates growth from contraction.
The ongoing US fiscal stimulus debate later saw the New Zealand Dollar decline slightly against its US rival, to trade in the region of 80.71 US cents.
Both the AUD/USD and NZD/USD pairings could experience movement in response to the publication of several pieces of influential US data in the hours ahead, including producer price and industrial production figures.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9607 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7202 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6135 >
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1881 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0431 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3898 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6318 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8384 <
Current New Zealand Dollar (NZD) Exchange Rates
< Down > Up
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8063 <
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5136 <
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5149 <
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8394 <
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2402 >
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9430 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6545 >
The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1912 >
The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2314 >
(Correct as of 10:15 GMT)
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