The Australian and New Zealand Dollars are both trading lower against their US counterpart as growing expectations of a military strike by the US and its allies against Syria sent investors seeking shelter in safe haven assets.
Speculation is increasing that a military strike could occur as soon as Thursday as the USA said that it has proof that the Assad regime used chemical weapons on its own people. The Syrian tension is greatly dampening risk appetite in the global markets and both the ‘Aussie’ and ‘Kiwi’ are in the firing line.
The Australian currency was also weighed down by comments made by Australian Central Bank board member John Edwards who said that the currency is still too strong to support the nation’s economy. He added that he expects that once the US Federal Reserve begins to taper its monetary policy, the US Dollar will rise in strength and push the ‘Aussie’ down further.
The start of the tapering process “is highly likely to be associated with a strengthening of the US dollar and a weakening of our dollar, which will be good for us,” Mr Edwards said.
The New Zealand Dollar meanwhile extended its declines.
“It’s all about Syria and the impending missile strike – that’s what’s really driving the market. There’s a big uptick in risk aversion” which has sapped demand for the local currency”, said a senior currency dealer based in Auckland.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.8918
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6669
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5756
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1502
Current New Zealand Dollar (NZD) Exchange Rates
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7753
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5798
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5004
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8693
(Correct as of 10:15 am GMT)
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