Although the ‘Aussie’ leapt to a two-week high against the US Dollar as the Federal Reserve disappointed expectations, and the ‘Greenback’ broadly softened, domestic employment data saw the South Pacific currency weaken against the Pound during the local session.
The Australian Dollar exchange rate was trading in the region of 0.6119 against the British Pound as of 10:00 am GMT
As Federal Reserve Chairman Ben Bernanke stated that the US employment and inflation outlook would have to improve if the current level of easing were to be reduced, the US Dollar posted widespread declines.
The Australian Dollar consequently advanced by 1.1 per cent against its US rival, to trade in the region of 92.75 US cents during the North American session.
As currency strategist John Horner observes: ‘A pretty clear dovish slant from Bernanke is seeing an unwind of Dollar longs. Given that both the Aussie and Kiwi have been weighed on heavily by expectations of the Fed tapering its bond purchases, both are benefiting now.’
However, after official data showed that the Australian unemployment rate climbed to 5.7 per cent, an almost four-year high, the ‘Aussie’ shed some of its gain against the US Dollar and softened against peers including the Pound and Euro.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a low of 0.6028
Although the increase in the Australian unemployment rate was disappointing, an employment change report also showed that the nation’s economy added 10,300 jobs in June (rather than stagnating as expected) and the participation rate rose to 65.3 per cent.
In response to the news a Sydney-based industry expert observed: ‘Because the unemployment rate gets buffeted around by the participation rate, the market generally – rightly or wrongly – looks first at job creation. The Aussie’s had a strong day on US Dollar weakness and the net change in interest-rate pricing wasn’t very much.’
The employment reports also saw the odds of the Reserve Bank of Australia issuing a rate cut when it meets in August rise from 56 per cent to 64 per cent.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9229 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7086 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6119 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1686 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0822 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4133 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6345 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8549 >
Correct as of 10:00 am GMT
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