The Australian Dollar is set to continue its downward trend against the Pound and could sent tumbling further later in Friday’s session if key data out of the United States comes in strongly.
The financial markets will use today’s US jobs data for guidance as to when the Federal Reserve could begin tapering its $85 billion per month monetary easing programme. If the data does come in strongly then the ‘Aussie’ will come under more pressure as any talk of tapering weakens the Australian currency which has benefited from the increased demand for higher yielding assets.
“As the Fed moves towards taper and the market begins to start the countdown towards eventually tightening in policy, that leaves the Australian Dollar particularly vulnerable, I think there are a lot of channels by which this tapering has fairly far reaching effects that are negative for Aussie.
‘It’s likely to be associated with pressure on Asian currencies, which should see proxy selling of Aussie by the longer-term investors who use Aussie as a means to gain exposure to the region,” said Citi currency strategist Todd Elmer.
Investors chose to ignore data released late yesterday. The AiG Performance of Construction Index climbed to 55.2 in November, its highest reading since November 2010.
Early on Friday Sterling was able to push higher against the ‘Aussie’. UK House Prices climbed more than forecast in November. The year on year Halifax House Price Index climbed to 7.7%, higher than the previous month’s figure of 6.9%.
Current Australian Dollar Exchange (AUD) Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9061
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6630
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5539
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1058
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1036
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5082
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.8051
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9042
Correct as of 10:05am GMT
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