Exchange Rate Outlook: AUD/NZD at Five-Year Low


Pound Sterling

Before UK inflation data was released the Pound was holding steady against the Euro and US Dollar. Sterling slipped against a broadly strengthening Euro yesterday but managed to edge higher against the ‘Greenback’ is spite of data showing a decline in UK house prices. With investors focused on the upcoming FOMC meeting Pound movement could be a little limited in the hours ahead.

GBP/EUR is trading in the region of 1.1849 and GBP/USD is trading in the region of 1.6318

US Dollar

With yesterday’s surprisingly strong US industrial/manufacturing output reports adding to the case for the Federal Reserve tapering stimulus tomorrow the US Dollar was able to recover losses and brush a five-year high against the Yen. However, the expectation that the Fed will opt to hold interest rates at record lows until next year saw the ‘Buck’ slip against the Pound and Euro.

USD/GBP is trading in the region of 0.6128 and USD/EUR is trading in the region of 0.7260


If today’s ZEW economic sentiment surveys for Germany and the Eurozone show the improvement expected the Euro could extend gains recorded yesterday as a result of impressive manufacturing output reports for the currency bloc.

EUR/GBP is trading in the region of 0.8440 and EUR/USD is trading in the region of 1.3776

Australian Dollar

As the minutes from the latest Reserve Bank of Australia policy meeting confirmed that the central bank is concerned about the strength of the ‘Aussie’ the commodity-driven asset slipped during local trading. The Australian Dollar was close to a five-year low against its New Zealand counterpart and retained declines against the ‘Greenback’, Euro and Pound.

AUD/GBP is trading in the region of 0.5479, AUD/EUR is trading in the region of 0.6491 and AUD/USD is trading in the region of 0.8935

New Zealand Dollar

In the absence of pertinent economic news for New Zealand, ‘Kiwi’ movement was largely driven by global developments during the South Pacific session and the currency advanced on a broadly weakening ‘Aussie’ while remaining little changed against the US Dollar. With several domestic reports due out tomorrow ‘Kiwi’ movement can be expected.

NZD/GBP is trading in the region of 0.5066, NZD/EUR is trading in the region of 0.6001 and NZD/USD is trading in the region of 0.8279

Canadian Dollar

During North American trading the ‘Loonie’ lost ground against the majority of its peers and softened to an almost three-year low against the US Dollar. Although today’s Canadian manufacturing shipments report could cause fluctuations in the commodity-driven currency, investors will be preoccupied with speculation surrounding tomorrow’s FOMC announcement.

CAD/GBP is trading in the region of 0.5792, CAD/EUR is trading in the region of 0.6863 and CAD/USD is trading in the region of 0.9447

These exchange rates were correct as of 9:25 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.