The Australian Dollar began Thursday’s session softer against the Pound but soared by a quarter of a US Cent to a four-month high against the US Dollar after a deal was struck to re-open the US government and raise the debt ceiling.
The last minute deal struck by Congress boosted demand for riskier assets as investors breathed a sigh of relief that the world’s largest economy will not default on its debts. Despite the sense of relief many investors were disappointed with the deal as it simply postpones the issues until the start of 2014 where uncertainty is likely to emerge yet again.
“The stop-gap measure is not an ideal outcome as Washington lawmakers are only setting themselves up for another potential showdown later down the track. A last minute deal had been widely expected by the market and was priced in during the lead up to the deadline. This may suppress US Dollar strength and support equities such as the Australian Dollar.” said market analyst David de Ferranti.
The Australian Dollar is likely to make further gains on Friday if the latest data out of China shows that retail and industrial output increased in September.
The currency is also benefitting from comments made by Pimco which said that the currency’s strength is likely to mean that short-term interest rates in the country are likely to remain lower for longer and expects the Australian Central Bank to maintain rates at record lows until the end of next year.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9586
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7035
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5967
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1329
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4214
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6757
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8826
Correct as of 09:30 am GMT
Comments are closed.