‘Aussie’ Dollar’s recent drop may have been excessive

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Pound Sterling

Although an industry report showed that consumer confidence in the UK hit its highest level for over two years in June, the Pound was little changed against its main peers this morning. Separate figures showed that UK house prices climbed for a second month, although the advance was smaller than estimated. Sterling was holding steady against the Euro and US Dollar as the European session progressed.

GBP/EUR is trading in the region of 1.1698 and GBP/USD is trading in the region of 1.5261

US Dollar

With today’s US data forecast to show an improvement in the nation’s consumer sentiment and business activity, the US Dollar was able to advance on several of its rivals before local markets opened and post a reasonable gain against the safe-haven Yen.

USD/GBP is trading in the region of 0.6558 and USD/EUR is trading in the region of 0.7666

Euro

Better-than-expected German retail sales figures helped the Euro climb against the Pound this morning. Although economists forecast a month-on-month rise of 0.4 per cent, sales actually jumped by 0.8 per cent in May. Additional Euro fluctuations may occur before the weekend as a result of German inflation data.

EUR/GBP is trading in the region of 0.8550 and EUR/USD is trading in the region of 1.3045

Australian Dollar

The prospect of further positive US data encouraging the Federal Reserve to taper stimulus before the end of the year continued to weigh on the ‘Aussie’ during the local session. Declines were limited however as a technical indicator revealed that the currency’s recent drop may have been excessive.

AUD/GBP is trading in the region of 0.6075, AUD/EUR is trading in the region of 0.7097 and AUD/USD is trading in the region of 0.9248

New Zealand Dollar

Rallying Asian stocks allowed the New Zealand Dollar to climb against its American and British counterparts during local trade. The ‘Kiwi’ was also supported as domestic building permits jumped by 1.3 per cent in May rather than declining by 3.9 per cent as forecast.

NZD/GBP is trading in the region of 0.5121, NZD/EUR is trading in the region of 0.5971 and NZD/USD is trading in the region of 0.7801

Canadian Dollar

The expectation that today’s Canadian GDP figures will show that the nation’s economy stagnated in May caused the ‘Loonie’ to lose ground against the US Dollar and trade slightly lower against the Pound. Today’s US news could also inspire Canadian Dollar fluctuations.

CAD/GBP is trading in the region of 0.6251, CAD/EUR is trading in the region of 0.7313 and CAD/USD is trading in the region of 0.9538

These exchange rates were correct as of 9:05 am

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.