The Australian Dollar is trading softer against the Pound and retreated from a three-month high against the US Dollar after Asian stocks took a tumble and speculation over a possible tapering of the Federal Reserve’s bond buying programme weighed on risk sentiment.
Last week saw the US Central Bank choose to refrain from making a cut to its monetary easing programme which has benefitted the world’s commodity and emerging market currencies. However, comments made overnight in the US by a number of Federal Reserve policy makers has created speculation that a cut could be made at next month’s policy meeting.
“It’s been a down day overall and I suppose you would point the finger at regional equity sentiment which has been fairly negative, essentially taking the lead from Wall Street. There’s a lot of red in the region today.
“There are some nerves, with people still mostly focused on the Fed. We’ve had a flurry of competing Fed officials telling a different story and the market is not very thrilled by the discord they see at the Fed at the moment” said Sean Callow, senior currency strategist at Westpac.
The ‘Aussie’ also fell against most of its other major peers after stocks in Asia retreated from a four-month high.
“The equity markets opened on a softer foot, and we’re seeing a bit of weakness in the Aussie dollar as some risk comes off the table,” said Jim Vrondas, the Sydney-based chief currency and payment strategist at OzForex Ltd. “I don’t expect it to have a long-lasting effect.”
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9390 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6950 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5869
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0649 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4387 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7038 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8835 <
Correct as of 10:30 am GMT
Comments are closed.