Exchange Rate outlook: ‘Aussie’ makes its longest fall since 1985

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Pound Sterling

The Pound is on track to make a second weekly decline against the Euro despite the publication of data which showed that UK house prices climbed to a new record high in November. The currency could recover some ground later in the session if data shows that UK construction output increased in October.

GBP/EUR is trading in the region of 1.1879 and GBP/USD is trading in the region of 1.6344

US Dollar

The US Dollar reached a six-month high against the Japanese Yen as investors raised their bets that the US and Japanese monetary policies will diverge. The currency found support yesterday after retail sales data came in better-than-expected.

USD/GBP is trading in the region of 0.6118 and USD/EUR is trading in the region of 0.7267

Euro

The Euro firmed against the US Dollar and Pound as it continues to receive support from expectations that the European Central Bank will not introduce negative rates or more monetary easing measures. The currency was also supported by the release of Germany’s wholesale price index which fell at a slower rate than expected.

EUR/GBP is trading in the region of 0.8418 and EUR/USD is trading in the region of 1.3759

Australian Dollar

The ‘Aussie’ is on track to make its longest run of weekly declines in 28 years as the governor of the Reserve Bank of Australia; Glenn Stevens intensified his efforts to talk down the ‘Aussie’.

AUD/GBP is trading in the region of 0.5473, AUD/EUR is trading in the region of 0.6501 and AUD/USD is trading in the region of 0.8945

New Zealand Dollar

The ‘Kiwi’ pushed further beyond a five-year high against its Australian relation after the New Zealand Central Bank said that it had left interest rates unchanged and hinted that it will reduce stimulus measures as the economy continues to improve. A positive manufacturing report also boosted demand for the currency.

NZD/GBP is trading in the region of 0.5049, NZD/EUR is trading in the region of 0.5998 and NZD/USD is trading in the region of 0.8253

Canadian Dollar

The Canadian Dollar ended its run of three straight days of advances after Bank of Canada Governor Stephen Poloz’s reiterated the central bank’s recent dovish stance.

CAD/GBP is trading in the region of 0.5744, CAD/EUR is trading in the region of 0.6824 and CAD/USD is trading in the region of 0.9389

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.