The Australian Dollar climbed away from its multi-year low against the Pound overnight after the Oceanic currency found some support from yesterday’s Chinese growth data and as trade was muted.
The overnight gains were reversed on Tuesday morning as investors turned their attention to upcoming UK data releases which include today’s CBI Business Optimism Index, Wednesday’s unemployment data and monetary policy committee meeting minutes.
“The big things this week are obviously going to be the minutes and the labour-market statistics. Plus we have 10-year supply on Thursday, so I think the rally has reached the extent of how far it’s going to go and I’d expect gilt yields up from here,” said a strategist at Banco Santander SA.
The Confederation of British Industry’s CBI report is expected to show that confidence in the UK economy climbed to its highest level since 1994, and Wednesdays unemployment data is expected to fall closer to the Bank of England’s target rate of 7%.
The ‘Aussie’ also resumed its decline against the Euro after a Eurozone ZEW economic sentiment report showed that sentiment increased in January to 73.3, up from the previous months figure of 68.3. Sentiment also improved in Germany.
Germany’s figure slid to 61.7 in January from a seven-year high of 62 in December. Gains were restrained however as both sets of figures were blow economist forecasts.
Against the New Zealand Dollar the ‘Aussie’ remained trading at 8-year low after inflation in the smaller Oceanic nation unexpectedly rose in December which caused investors to raise their bets that the Reserve Bank of New Zealand could raise interest rates at next week’s policy meeting.
Current Australian Dollar Exchange (AUD) Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Australian Dollar,
,US Dollar,0.8777 ,
Australian Dollar,,British Pound,0.5337 ,
Australian Dollar,,Euro,0.6485 ,
Australian Dollar,,New Zealand Dollar,1.0567 ,
US Dollar,,Australian Dollar,1.1391 ,
British Pound,,Australian Dollar,1.8726 ,
Euro,,Australian Dollar,1.5411 ,
[/table]
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