‘Aussie’ demand bolstered

Pound Sterling

After the likelihood of a Spanish bailout was bolstered by the nation’s credit downgrade investor appetite for higher-risk assets grew. Consequently, Sterling was able to make a crawling advance on its US counterpart whilst sliding against the Euro. Should Spain finally succumb and apply for a bailout the desire for safe-haven investment could weaken further and the Pound could make significant gains. With no UK data scheduled for release today any fluctuations in the fortunes of the British currency are likely to be the result of European developments.

The Pound is presently trading against the Euro in the region of 1.2372 and is trading against the US Dollar in the region of 1.6049

US Dollar

In the wake of far better-than-expected US unemployment claims the ‘Greenback’ was able to trump its safe-haven competitor and gain against the Japanese Yen. However, issues within the Eurozone saw the US Dollar slide against the British Pound. Investors who are hoping to see the American currency continue its bullish trend against the Yen will want to watch out for several key US data release including PPI and UoM Consumer Sentiment figures.

The US Dollar is presently trading against the Pound in the region of 0.6229 and is trading against the Euro in the region of 0.7704

Euro

The Euro enjoyed what many fear will be a brief rebound following comments made by the International Monetary Fund. After the IMF announced that governments belonging to the 17 nation currency bloc should be given longer to get the area’s raging financial crisis under control the Euro rallied, advancing against the British Pound and several of its other peers. The Eurozone’s Industrial Production figures for August will be the main cause of volatility today.

The Euro is presently trading against the Pound in the region of 0.8077 and is trading against the US Dollar in the region of 1.2974

Australian Dollar

Demand for the Down-under Dollar was bolstered following the rise of commodity prices and the ‘Aussie’ was pushed to levels not seen for over a week. With the prices for iron ore at a two month high the Australian Dollar was able to advance against the majority of its currency rivals. Positive US data also boosted confidence in global economic recovery which heighted investor interest in riskier currencies like the ‘Aussie’. This upward trend could continue if today’s US data releases also come in better-than-expected.

The Australian Dollar is presently trading against the Pound in the region of 0.6395, is trading against the Euro in the region of 0.7912 and is trading against the US Dollar in the region of 1.0266

New Zealand Dollar

Following reports of a widening US trade deficit in August, and news that Singapore will not be implementing monetary stimulus methods at the current time, demand for exports faltered. In light of this development the ‘Kiwi’ made gains against it’s US and Japanese counterparts. However, emboldened investor appetite for riskier assets left the New Zealand Dollar relatively unchanged against the British Pound and 0.2 Cents lower against the Euro.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5092, is trading against the Euro in the region of 0.6338 and is trading against the US Dollar in the region of 0.8199

Canadian Dollar

With the US trade deficit widening, the Canadian trade deficit narrowing and commodities rallying, the ‘Loonie’ recorded gains against its American rival for the first time in several days.  Canada’s primary export, crude oil, gained 1.2 per cent and this, combined with a more positive investor outlook, has given the Canadian Dollar a boost.

The Canadian Dollar is presently trading against the Pound in the region of 0.6365, is trading against the Euro in the region of 0.7874 and is trading against the US Dollar in the region of 1.0228

 

Richard Martin
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After working in business development for a major UK currency brokers for several years, Richard left Britain to help set up the company’s Australian office and now lives and works in Queensland; making the most of his new Down-Under lifestyle.