The Australian Dollar has strengthened against its most traded peers including the Pound and US Dollar due to a dampening of expectations that the US Federal Reserve will taper its monetary easing programme, increasing demand for higher yielding assets.
The Australian currency was also supported by comments made by the Group of 20 nations that they will pursue careful and clearly communicated policy moves and after Chinese officials announced that they scrapped a rule that had constrained lending by its banks.
The G20 said that they will move “more rapidly” toward market-determined exchange-rate systems, according to a July 20th statement after a meeting of finance chiefs in Moscow. The statement came after the People’s Bank of China said on July 19th that it had ended a floor on borrowing costs previously set at 30% below the benchmark level.
“The G-20’s comments seemed to have settled markets down,” said Hans Kunnen, senior economist at St. George Bank Ltd. in Sydney. “I’m more surprised when the Aussie goes up than when it goes down, because I think some of the supports that have been there for the last six months to a year are starting to be eroded.”
The next big mover to the Australian currency comes on Wednesday with the release of the latest Consumer Price Index data which is expected to hold steady at the previous month’s level of 2.5%. Aside from that data release this week is a quiet one for economic data meaning that the ‘Aussie’s’ movements will all depend on international factors.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9237
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7012
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: 1.1637
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0825
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4260
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6597
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8593
Correct as of 14:30 pm GMT
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