Exchange Rate Outlook: AUD/NZD Close to Five-Year Low


Pound Sterling

The expectation that today’s UK mortgage data will show that approvals rallied to an almost four-year high helped the Pound edge up to a one-month high against the US Dollar. Sterling was also slightly stronger against the Euro. In a comparatively quiet news day currency market movement may be limited.

GBP/EUR is trading in the region of 1.1979 and GBP/USD is trading in the region of 1.6205

US Dollar

The ‘Buck’ began the week slightly softer against currency rivals like the Pound and Euro. However, if today’s US pending home sales and manufacturing activity data show improvement the North American asset could recover losses as trading continues.

USD/GBP is trading in the region of 0.6171 and USD/EUR is trading in the region of 0.7384


Last week’s surprisingly strong business confidence reports for Germany boosted the Euro and the common currency has largely retained gains over the weekend. Whilst Euro movement may be restricted for the first half of the week due to a lack of pertinent economic news, with German employment and Eurozone inflation figures scheduled for release from Thursday the week could end with Euro volatility.

EUR/GBP is trading in the region of 0.8349 and EUR/USD is trading in the region of 1.3533

Australian Dollar

Overnight the ‘Aussie’ slumped against its rivals, hitting a five-year low against the New Zealand Dollar and trading close to a 2 ½ month low against the US Dollar. The South Pacific asset continues to be adversely affected by speculation surrounding the possibility of RBA currency intervention.

AUD/GBP is trading in the region of 0.5638, AUD/EUR is trading in the region of 0.6744 and AUD/USD is trading in the region of 0.9150

New Zealand Dollar

Hopes that the Reserve Bank of New Zealand might begin raising interest rates next year saw swap rates surge to a two-year high and triggered widespread ‘Kiwi’ gains during the local session. The New Zealand Dollar advanced on all of its most traded rivals ahead of tomorrow’s domestic trade balance report.

NZD/GBP is trading in the region of 0.5067, NZD/EUR is trading in the region of 0.6053 and NZD/USD is trading in the region of 0.8221

Canadian Dollar

In the aftermath of the release of Canadian inflation and retail sales data, the ‘Loonie’ closed trading on Friday slightly softer. Canada’s average weekly earnings figures, current account data and GDP report are likely to be the main causes of ‘Loonie’ movement over the next five days.

CAD/GBP is trading in the region of 0.5846, CAD/EUR is trading in the region of 0.7003 and CAD/USD is trading in the region of 0.9475

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.