Australian Dollar declined against rivals

Pound Sterling

The Pound continued its recent bearish trend against the US Dollar following the release of an industry report which showed a slowing of retail sales in December. The British currency also fell against its European rival for a third consecutive day, declining by 0.2 per cent against the Euro and 0.2 per cent against the US Dollar. In the hours ahead movement in the Pound could be triggered by a stream of economic data for the Eurozone. If any of the indicators come in higher than forecast increased risk appetite could allow Sterling to pare recent losses against the safe-haven ‘Greenback’.

The Pound is presently trading against the Euro in the region of 1.2264 and is trading against the US Dollar in the region of 1.6080

US Dollar

The US Dollar experienced little movement yesterday due to an absence of significant global economic data. However, the ‘Greenback’ did creep closer to a month-high against the British Pound on the back of disappointing UK retail sales. Although the US data scheduled for release today is unlikely to inspire much movement fluctuations in the American currency could occur as a result of developments in the Eurozone. Of particular interest are Eurozone consumer confidence, retail sales, and unemployment rate figures.

The US Dollar is presently trading against the Pound in the region of 0.6220 and is trading against the Euro in the region of 0.7620

Euro

After posting declines against several of its most traded peers yesterday the Euro is expected to experience notable movement today on the back of the release of several influential pieces of economic data for the currency bloc. Figures have already shown that German exports declined by more than expected in November. If Eurozone retail sales, consumer confidence and unemployment rate figures also disappoint investors are likely to turn to safe-haven assets like the US Dollar, causing the common currency to fall.

The Euro is presently trading against the Pound in the region of 0.8154 and is trading against the US Dollar in the region of 1.3123

Australian Dollar

For the first time in several days the Australian Dollar declined against several of its main counterparts. The ‘Aussie’s descent was triggered by a report showing that Australia had recorded the largest trade deficit for over four years. Against safe-haven rivals the US Dollar and Japanese Yen the Australian Dollar declined by 0.2 and 0.6 per cent respectively. Further movement can be expected tomorrow morning following the release of Australian retail sales data.

The Australian Dollar is presently trading against the Pound in the region of 0.6521, is trading against the Euro in the region of 0.7994 and is trading against the US Dollar in the region of 1.0480

New Zealand Dollar

Yesterday the New Zealand Dollar continued to fall after Asian stocks declined by the most for a fortnight. Concerns regarding excessive recent losses for the Japanese Yen also caused the ‘Kiwi’ to drop 0.5 per cent against the safe-haven currency. However, the New Zealand Dollar was able to continue trading higher against its Australian counterpart after data revealed increased consumer demand in New Zealand. Tomorrow several pieces of important economic data, including New Zealand’s trade balance, export and import figures, are likely to cause ‘Kiwi’ volatility.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5191, is trading against the Euro in the region of 0.6366 and is trading against the US Dollar in the region of 0.8362

Canadian Dollar

Yesterday the ‘Loonie’ continued to benefit from Friday’s far higher than expected employment figures. After dropping against a broadly strengthening ‘Greenback’ earlier in the day, the Canadian Dollar was able to close trade higher than it began, rising 0.14 of a cent against its US counterpart. The next piece of influential Canadian economic data, housing starts for December, is due for release tomorrow.

The Canadian Dollar is presently trading against the Pound in the region of 0.6304, is trading against the Euro in the region of 0.7729 and is trading against the US Dollar in the region of 1.0143

 

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.