Exchange Rate Outlook: Aussie Falls, Euro Fluctuates

uk_money

Pound Sterling

During Monday’s trading session the Pound broadly softened as a result of disappointing UK services data and comments regarding the necessity of further spending cuts. The British currency held steady against the Euro and US Dollar as a survey conducted by the British Chambers of Commerce intimated that the UK’s economic recovery will continue.

GBP/EUR is trading in the region of 1.2035 and GBP/USD is trading in the region of 1.6390

US Dollar

After advancing on the majority of its most traded peers over past several days the ‘Buck’ began to retrace its steps as the US services sector was shown to have expanded by less-than-anticipated. However, today’s US trade balance figures could see the US Dollar recover losses.

USD/GBP is trading in the region of 0.6101 and USD/EUR is trading in the region of 0.7343

Euro

While the Euro failed to post significant gains yesterday following the release of comparatively upbeat services, investor confidence and inflation data for the Eurozone and its largest economy, the common currency strengthened as European trading began. A strong surge in German retail sales buoyed the Euro, although advances were a little limited ahead of German employment and Eurozone inflation data.

EUR/GBP is trading in the region of 0.8312 and EUR/USD is trading in the region of 1.3617

Australian Dollar

Although the ‘Aussie’ was briefly able to approach a month high against the US Dollar the South Pacific currency shed gains overnight as a report showed that the value of trade between Australia and China (its major trading partner) declined. If today’s AiG performance of construction index for Australia disappoints the ‘Aussie’ could extend declines.

AUD/GBP is trading in the region of 0.5446, AUD/EUR is trading in the region of 0.6552 and AUD/USD is trading in the region of 0.8930

New Zealand Dollar

Once again, a lack of domestic data limited movement in the New Zealand Dollar. The currency ended local trading little changed against its major counterparts. While global developments could inspire some ‘Kiwi’ movement today, tomorrow’s Chinese trade balance figures may have a more notable impact on the currency.

NZD/GBP is trading in the region of 0.5048, NZD/EUR is trading in the region of 0.6080 and NZD/USD is trading in the region of 0.8930

Canadian Dollar

After Canada’s Finance Minister asserted that the ‘Loonie’ is likely to depreciate the commodity driven currency declined against several of its major rivals. The Canadian Dollar was little affected by domestic industrial product price/raw materials price figures but could move today as a result of Canada’s Ivey Purchasing Managers Index.

CAD/GBP is trading in the region of 0.5716, CAD/EUR is trading in the region of 0.6878 and CAD/USD is trading in the region of 0.9369

These exchange rates were correct as of 9:15 am

Richard Martin
This post was written by
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.