The Australian Dollar is trading slightly softer against the Pound and the majority of its peers after the governor of the Australian Reserve Bank said that the currency may be weaker in the future.
Stevens said that the currency wasn’t being supported by productivity and expenses in the local economy and that the nation’s trade was more likely to fall than rise due to the strength of the ‘Aussie’. Following his comments the currency fell.
“The foreign exchange market is perhaps another area in which investors should take care. It seems quite likely that at some point in the future the Australian Dollar will be materially lower than it is today.’ Stevens said in Sydney.
He went on to comment on the impacts of the delay to the tapering of the US Federal Reserve’s monetary easing programme, a programme that has helped boost the strength of both the ‘Aussie’ and New Zealand Dollars as well as other emerging market currencies. The Fed is due to begin its two-day long policy meeting later today and a decision on whether to start cutting or not will be announced on Wednesday.
“It would be a mistake to relax for a very long in the face of this delay. Surely the taper will come. For some countries including Australia , the beginning of a return to something resembling more normal conditions in at least one major advanced country, would lessen some of the difficulties we face in our own policy choices” Stevens added.
The New Zealand Dollar meanwhile also softened against its peers as investor attention focused on the start of the US Federal Reserve’s two day long policy meeting. The ‘Kiwi’ is likely to find support over the next few days as risks to the US Dollar are likely to weigh heavily upon the US currency.
The New Zealand Central Bank is expected to maintain interest rates at 2.5%.
Some economists are expecting the ‘kiwi’ to trade in a range of 82.50 US cents to 83 cents in the next 24 hours.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9508
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6907
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5912
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1519
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4477
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6914
Current New Zealand Dollar (NZD) Exchange Rates
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8254
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5996
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5132
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8681
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2114
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9483
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6676
Comments are closed.