The Australian Dollar fell to a multi-month low against the Pound and slipped to a two-month low against the US Dollar after it came under pressure from weak data out of China and increased expectations by investors that Reserve Bank of Australia governor Glenn Stevens talked down the currency.
According to HSBC Holdings Plc and Markit Economics, China’s manufacturing Purchasing Managers Index for November came in at 50.4. The figure disappointed investors who had been expecting a rise to 50.8. Any number above 50 indicates expansion; a figure below indicates a contraction.
The currency was weakened further following RBA governor Glenn Stevens speech. Stevens said that the Central Bank could be open to implementing large scale currency intervention measures to weaken the ‘stubbornly high currency’.
In the past the RBA has refrained from using easing measures as it deemed them to be ineffective.
“That doesn’t mean we will always eschew intervention. Our position has long been, and remains, that foreign exchange intervention can, judiciously used in the right circumstances, be effective and useful,” Stevens said as he addressed the annual Australian Business Economists annual dinner in Sydney.
The currency came under further pressure after the International Monetary Fund announced that it believes that the Australian Dollar ‘looks overvalued by around 10%’.
The New Zealand Dollar fell against the majority of its most traded peers due to the weaker-than-expected data out of China and as concerns mounted that the European Central Bank were contemplating implementing negative interest rates in order to aid the flagging European economy. The ongoing confusion as to whether the Federal Reserve will cut its monetary easing programme is also weighing heavily upon the commodity based currency.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9271
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6900
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5761
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1284
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4491
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7356
Current New Zealand Dollar (NZD) Exchange Rates
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8216
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6115
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5105
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8861
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2171
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9585
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6352
Correct as of 10:10 am GMT
Comments are closed.