Although news from the US has been a major cause of currency movement in recent weeks, the ‘Aussie’ was adversely affected during local trade by the expectation that this week’s Australian employment data will show that the nation’s labour market is stagnating.
The Australian Dollar exchange rate was trading in the region of 0.6091 against the British Pound as of 10:00 am GMT
The South Pacific currency lost ground against a bullish US Dollar, dropping to within touching distance of a three year low, but was also trading slightly lower against the Pound – despite last week’s dovish Bank of English policy statement causing the British currency to broadly soften.
Economists have forecast that Australia’s economy added no jobs in June, following May’s 1,100 gain. The unemployment rate is expected to climb from 5.5 per cent to 5.6 per cent.
In light of domestic economic concerns the odds of the Reserve Bank of Australia issuing a rate cut in the near-future are increasing, and the ‘Aussie’ is weakening as a result.
As currency strategist Robert Rennie observed: ‘It’s inevitable that Aussie pushes lower. Lower rates are clearly required [Furthermore] financial markets just have to accept the inevitable, that the Fed is going to start tapering its monthly asset purchases. And that is going to be an important factor that will continue to weigh on the Australian Dollar.’
Other influential local data due for release this week includes tomorrow’s business confidence and business condition indexes, and Wednesday’s Westpac consumer confidence report.
The employment data is due out on Thursday.
Meanwhile, the New Zealand Dollar posted a modest advance against its US and British counterparts during the local session as data showed that house prices in New Zealand climbed in June.
The Australian Dollar recouped some of its losses as the European session opened and was able to advance on the Euro as investor confidence in the Eurozone unexpectedly declined.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9063 –
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7060 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6091 –
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1719 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1039 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4167 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6427 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8530 >
Correct as of 10:00 am GMT
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