The Australian Dollar has weakened against the US Dollar and also against the Pound and Euro as the market awaits the outcome of the testimony by US Federal Reserve Chairman Ben Bernanke. This comes as consumer sentiment data showed a decline.
Bernanke’s testimony, which is due around 3pm GMT, is being hailed as critical for setting a renewed tone in the currency market. Economists are expecting the Fed Chairman to commit to continue with buying bonds in an attempt to boost growth. If Bernanke does say as much then the US Dollar is expected to make a rather hefty decline which will support the Australian currency as well as many others.
“Any insight gained from Bernanke’s address could have a significant bearing on all markets globally,” CMC Markets premium-client manager William Leys said. “If there is any hint of a wind down in the near term we could see the U.S. Dollar continues to strengthen at the expense of its currency counterparts as well as commodities.”
Consumer sentiment meanwhile fell for a second consecutive month in May despite the Reserve Bank of Australia cutting interest rates to a record low. The Westpac-Melbourne institute Index for consumer sentiment fell by 7% in May to its lowest level since August 2012. The decline is being blamed on the Australian governments May budget which showed a weakening fiscal position.
Minutes from the US Fed’s latest policy meeting are due for release, too later today, but traders said Mr. Bernanke’s comments are more important.
Current Australian Dollar (AUD) Exchange Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9782
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7564
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6458
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2001
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0222
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3220
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.5483
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8332
(Correct as of 10:05 am GMT)
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