The Australian Dollar has softened against the Pound and US Dollar, hovering around the 91 cents mark as investors expect another round of positive US data releases on Wednesday.
The ‘Aussie’ softened yesterday after US retail sales figures helped the US currency to rally against its peers. In early trading on Wednesday the ‘Aussie’ found some support after the Westpac Melbourne Institute Index of consumer sentiment jumped by 3.5% in August rising to 105.7. On a year by year basis the figure has improved by 9.4%. An index reading above 100 means that optimists outnumber pessimists.
Westpac chief economist Bill Evans said the data indicates that the August rate cut has helped consumer sentiment.
“Further evidence of the positive response to the rate cut can be found in the response of those folks with a mortgage, with their confidence lifting by 7.4 per cent. As the Australian Dollar stabilises, the labour market continues to weaken, inflation pressures remain contained and business confidence and investment remain soft, the case for further stimulus will be strong.”
The ‘Aussie’ is likely to weaken this afternoon as investors expect the latest US Producer Price Index data to show continuing signs of positive movement. Stronger economic data will raise expectations that the US Federal Reserve will wind down its $85 billion a month monetary easing programme. Any weakening however is likely to be relatively muted due to the supporting effect of high commodity prices.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9103
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6862
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5880
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1386
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0985
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4571
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7006
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8782
Correct as of 09:45 am GMT
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