The Australian and New Zealand Dollars both traded higher against the Pound on Monday as speculation builds that the US Federal Reserve will choose to delay tapering its monetary easing programme until next year.
The Federal Reserve is set to begin its two-day long policy meeting on Tuesday and investors have increased their bets that policy makers will vote to postpone tapering until early 2014. The reason for a delay is being blamed on the recent fiscal cliff and budget issues that saw the US Federal government close for 16 days. If the US Central Bank does decide to delay tapering its programme then the ‘Aussie’ and New Zealand Dollars as well as other commodity and emerging market currencies will strengthen further as the US Dollar is de-valuated as a result.
The Oceanic currencies are also finding support from expectations that manufacturing data out of China will show that the world’s second largest economy is experiencing growth in the sector at its fastest pace in 1 ½ years.
This week also sees the Reserve Bank of New Zealand announce its rate decision. The Central Bank is expected to maintain rates at 2.5%. Economists expect rates to rise to 2.75% by next June. The New Zealand financial markets were closed on Monday due to a national holiday.
The Pound meanwhile rose to a four-week high against the US Dollar after data showed that house prices in the UK increased for a ninth consecutive month in October.
Current Exchange Australian Dollar (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9621
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6966
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5937
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1561
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4355
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6842
Current New Zealand Dollar (NZD) Exchange Rates
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8322
The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.6025
The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5135
The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8649
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2015
The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9472
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6596
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