As the European session opened the Australian Dollar was trading lower against both the Pound and US Dollar as the imminent Federal Reserve policy statement continued to dictate market movement.
The ‘Aussie’ was, however, able to gain on the ‘Kiwi’ after its neighbouring rival was weakened by comments issued by New Zealand’s Finance Minister Bill English regarding the benefits of a weaker local currency.
The Australian Dollar exchange rate was trading in the region of 0.5864 against the British Pound as of 10:30 am GMT
During Australasian trading speculation regarding whether and to what extent the Federal Reserve will opt to taper stimulus triggered US Dollar fluctuations, and the ‘Aussie’ consequently paired recent gains against the safe-haven asset.
As currency expert Thomas Averill states, ‘The Aussie and particularly the Kiwi have rallied quite significantly over the last two to three weeks. [Now] people that have been long these currencies are perhaps taking a little bit of risk off the table.’
However, declines were limited by some encouraging Australian reports.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a low of 0.5847
The nation’s Westpac leading index gained 0.6 per cent in July month-on-month after stagnating in June, resulting in a reading of 295.1.
Similarly, the Conference Board leading economic index rose 0.3 per cent in July after recording a 1.1 per cent drop the previous month.
But the reports, while positive, did little to prevent the ‘Aussie’s modest decline against the Pound as the British currency firmed prior to the release of minutes from the Bank of England’s latest policy meeting.
Sterling went on to extend gains against the ‘Aussie’ after the BoE minutes showed that the entire Monetary Policy Committee believes that additional stimulus is unnecessary given the current rate of UK economic recovery.
With Australian data a little thin on the ground for the rest of the week further movement in the commodity-driven asset is most likely to be provoked by US developments, although tomorrow’s UK retail sales figures will also impact the AUD/GBP pairing.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9358 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7009 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5864 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1368 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0686 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4270 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7055 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8798 <
Correct as of 10:30 am GMT
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