The Australian and New Zealand Dollars have weakened against the Pound and US Dollar as the markets turn their attention towards the release of the latest jobs data out of the United States. The number of Americans out of work is expected to fall, increasing speculation that the Federal Reserve will begin to taper its monetary easing policy.
The ‘Aussie’ fell from a two-week high against the ‘Greenback’ before the release of the ADP Research institute report that is likely to show that US companies added jobs in August. The ‘Kiwi’ meanwhile also took a tumble as investors increased their bets that the Federal Reserve will announce the start of tapering for its quantitative easing programme when policy makers gather on September 17th.
The ADP data is expected to show that US companies created 182,000 jobs in August, continuing the improving jobs picture after July saw an increase of 200,000. The US Labour Department is also expected to add to the improving jobs picture by saying that payrolls rose by 180,000 in August whilst the unemployment rate held steady at 7.4%.
Both Oceanic currencies are likely to make gains against the Euro and Sterling late in the session according to Peter Dragicevich, currency economist at Commonwealth Bank.
“Better data in the U.S. suggests more positive signs for the global economy, so while the Aussie is not going to race away against the US Dollar it should outperform on the cross rates, The European Central Bank and Bank of England will reinforce their forward guidance so that will see the Euro and Sterling underperform, but the current sentiment in the market should see the Aussie and kiwi outperform.”
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9133
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6928
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5853
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4432
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7082
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8611
Correct as of 09:35 am GMT
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