The Pound advanced against the Australian Dollar on Friday to trade at its highest level since September 2009.
The ‘Aussie’ also tumbled for a third day against the US Dollar and fell against the Euro as speculation builds that Friday’s US payrolls report will come in strongly and bolster the likelihood that the Federal Reserve could decide to tapering its monetary easing programme at a faster than expected pace.
A tapering to the stimulus programme that has boosted asset prices will see commodity and emerging market currencies fall. Wednesday night saw the Fed release the minutes of its December policy meeting.
“While the committee was clearly attentive to the impact of taper on financial conditions, there was also concern expressed about compressed risk premiums if quantitative easing were to continue for too long. Our economists think the FOMC is on track to continue tapering in measured steps on course for ending asset purchases by the end of this year,” they said. “Against this backdrop, we remain constructive on the USD,” said analysts at BNP Paribas
The Pound gathered strength ahead of the Bank of England’s monetary policy announcement. Economists are expecting policy makers to maintain the bank’s bond-buying target and will keep interest rates at a record low.
Sterling is also likely to receive support from trade balance data which is forecast to show that the UK’s trade deficit narrowed in November.
Also weighing upon the ‘Aussie’ was the release of weaker than forecast inflation data of China, Australia’s biggest trading partner.
Current Australian Dollar Exchange (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.8877 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6518 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5393 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.0739 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1264 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5341 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.8541 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9311 >
Correct as of 09:30 am GMT
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