Exchange Rate Outlook: AUD/USD Recovers after Chinese GDP Data

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Pound Sterling

The Pound was able to advance to a week high against the Euro as a Rightmove housing report showed that house prices rose in January. Further Sterling movement might be limited in the days ahead due to a lack of influential economic news for the UK, but GBP volatility is likely to occur in response to Wednesday’s UK employment data.

GBP/EUR is trading in the region of 1.2132 and GBP/USD is trading in the region of 1.6443

US Dollar

Although the ‘Greenback’ ended trading on Friday slightly softer against some its major peers as the University of Michigan confidence index declined unexpectedly, the US Dollar strengthened to a two-month high against the Euro and was little changed against the Pound. Ahead of this week’s US initial jobless claims and Preliminary Markit PMI, Fed tapering speculation may continue lending support to the US Dollar.

USD/GBP is trading in the region of 0.6089 and USD/EUR is trading in the region of 0.7378

Euro

While the Eurozone’s economic outlook brightened slightly on Friday as Ireland’s investment grade rating was reinstated by Moody’s Investor Service, the Euro remained in the region of a two-month low against the ‘Buck’ and a week low against the Pound. The common currency was little affected by a surprise increase in German producer prices.

EUR/GBP is trading in the region of 0.8243 and EUR/USD is trading in the region of 1.3553

Australian Dollar

Stronger-than-forecast fourth-quarter growth data doe China helped the ‘Aussie’ edge away from an over three-year low against the US Dollar. Although seasonally adjusted quarter-on-quarter growth came in at 1.8 per cent rather than the 2.0 per cent expected, Chinese retail sales increased and helped the Australian Dollar climb.

AUD/GBP is trading in the region of 0.5353, AUD/EUR is trading in the region of 0.6491 and AUD/USD is trading in the region of 0.8796

New Zealand Dollar

Overnight the New Zealand Dollar was boosted by China’s economic data but slipped slightly against its Australian counterpart as the REINX house price index showed a decline in New Zealand’s house prices. Later today domestic inflation figures are likely to trigger additional ‘Kiwi’ fluctuations.

NZD/GBP is trading in the region of 0.5013, NZD/EUR is trading in the region of 0.6090 and NZD/USD is trading in the region of 0.8225

Canadian Dollar

The ‘Loonie’ remains weaker against the Pound and US Dollar as investors look ahead to this week’s Bank of Canada rate decision. With economic data releases thin on the ground the CAD may trade in a tight range against its major rivals today due.

CAD/GBP is trading in the region of 0.5553, CAD/EUR is trading in the region of 0.6736 and CAD/USD is trading in the region of 0.9132

These exchange rates were correct as of 9:35 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.