The Australian Dollar has fallen against the majority of its peers due to disappointing manufacturing data emerging out of China and is being weighed down against its US relation due to a decline in risk appetite.
China’s preliminary Purchasing Managers Index showed that manufacturing activity in the world’s second largest economy fell to a four-month low. The Index fell to 50.4 in February, down from the 52.3 posted in January. Economists had been predicting a reading of 52.2. As China is Australia’s biggest trading partner and is New Zealand’s second-largest market both currencies’ were weakened.
“It’s a surprisingly softer number, suggesting that the Chinese economy is pulling back a little,” said Greg Gibbs, a Singapore-based senior currency strategist at Royal Bank of Scotland Group Plc. “It has contributed to some softness in the Australian dollar. The Aussie is in a gradual downtrend.”
The Australian currency is expected to be weighed down further after three out of the four largest lenders in the county raised their expectations that the Reserve Bank of Australia would slash its borrowing costs to an all time low later in the year.
After Moody’s cut the UK’s coveted AAA credit rating it left Australia as one of a handful of economies that is holding the prized top rating. Against the Japanese Yen the ‘Aussie’ reached a 4 ½ year high after speculation increased that the Japanese government is close to nominating a very pro monetary stimulus man for the job of governor for the Central Bank of Japan.
The New Zealand Dollar meanwhile has had a slow day on the markets so far after being left on the sidelines due to greater interest in other international events such as the Italian election. The ‘Kiwi’ has pared its losses against the Euro as investors await the outcome of the vote. The currency could see some movement tomorrow after the Reserve Bank of New Zealand releases its latest inflation data.
Current AUD Exchange Rates
The Australian Dollar to Euro exchange rate is trading at 0.7777
The Australian Dollar to US Dollar (AUD/USD) exchange rate is trading at 1.0294
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is trading at 0.6799
The Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate is trading at 1.2275
The Australian Dollar to Canadian Dollar (AUD/CAD) exchange rate is trading at 1.0538
The Australian Dollar to Japanese Yen (AUD/JPY) exchange rate is trading at 96.6426
These exchange rates were correct as of 09:50 am GMT
Current NZD Exchange Rates
The New Zealand Dollar to Euro (NZD/EUR) exchange rate is trading at 0.6336
The New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate is trading at 0.5539
The New Zealand Dollar to US Dollar (NZD/USD) exchange rate is trading at 0.8386
The New Zealand Dollar to Australian Dollar (NZD/AUD) exchange rate is trading at 0.8146
The New Zealand Dollar to Canadian Dollar (NZD/CAD) exchange rate is trading at 0.8585
The New Zealand Dollar to Japanese Yen (NZD/JPY) exchange rate is trading at 78.7313
These exchange rates were correct as of 09:50 am
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