With domestic growth concerns mounting, the Federal Reserve’s easing programme in the spotlight and disappointing Chinese data expected, the Australian Dollar has taken a bit of a kicking this week.
The Australian Dollar exchange rate was trading in the region of 0.9479 against the US Dollar as of 10:10 GMT
As well as hitting a low of 94.65 against the US Dollar during local trade the ‘Aussie’ fell be 1 per cent against a broadly strengthening Yen and dropped to multi-week lows against the Euro and Pound.
Although speculation surrounding today’s US non-farm payrolls report and its possible repercussions has largely dominated the currency market this week, the ‘Aussie’ has also been adversely affected by disappointing domestic growth data and the expectation that tomorrow’s Chinese import figures will show that growth slowed.
Australian Dollar dropped to multi-week lows against Euro AUD/EUR and Pound GBP/USD
Economists are expecting that imports in China, a major trading partner of Australia, increased by 6.6 per cent in May year-on-year.
The New Zealand Dollar, while gaining slightly on the US Dollar during local trade, is still in line to post a 5-day decline of 2.4 per cent against its American rival.
According to currency strategist Dan Bell; ‘Global investors have decided to reassess their overweight views on the Kiwi and Aussie Dollars. The current mood does have the feeling of a more structural reallocation in global capital, and the Kiwi and Aussie could continue to underperform for some time.’
If today’s US non-farm payrolls report delivers a positive surprise, upping the odds of the Federal Reserve reining in its current level of stimulus, the US Dollar will strengthen and its Australian and New Zealand counterparts could record further losses.
Sunday’s Chinese industrial production and retail sales figures could also cause fluctuations in the South Pacific currencies.
Current Australian Dollar (AUD) Exchange Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9479 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7170 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6083 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1928 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0527 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.3956 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6433 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8393 >
(Correct as of 10:10 GMT)
Comments are closed.