The Australian Dollar is on course to make its biggest quarterly drop since 2008 on speculation that the US Federal Reserve will taper its monetary easing programme later in the year. The expectations have seen demand fall for Australian assets.
Meanwhile the New Zealand Dollar has continued to strengthen as it rallied with Asian stocks. The ‘Kiwi’ has found support after data showed that new building permits in the country increased by 1.3% to 1,818 in May, the biggest increase since 2008. Economists had been expecting a decline of 3.9%.
The Australian currency is expected to continue to decline against the majority of its peers after three major banks cut their forecasts for the currency. On Thursday night the National Australia Bank cut its forecasts, tipping the ‘Aussie’ to decline to US88 cents by December of this year, down from its previous prediction of US93 cents. The other banks to lower their forecasts were Goldman Sachs and Westpac.
The Australian Dollar has weakened by 13% since April as investors chose to shift money back to the USA as the world’s largest economy continues to improve. The currency has also weakened significantly against the Pound and Euro.
Instability and concerns over the Chinese banking sector has also weighed heavily upon the Australian Dollar. A credit squeeze had been threatening to cause turmoil in the world’s second largest economy. These fears have been allayed in recent days however after the People Bank of China has reassured investors some pressure was lifted off of the ‘Aussie.’
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9248
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7084
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6065
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1854
Current New Zealand Dollar (NZD) Exchange Rates
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7801
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5976
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5116
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8435
(Correct as of 11:20 am GMT)
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