Exchange Rate Outlook: NZD/AUD Brushes Five-Year High

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Pound Sterling

With UK news thin on the ground today Pound movement could be limited. However, the British currency was within touching distance of a three-week high against the US Dollar and was little changed against the Euro ahead of the publication of minutes from the latest Bank of England policy meeting, taking place tomorrow.

GBP/EUR is trading in the region of 1.1919 and GBP/USD is trading in the region of 1.6109

Overnight the ‘Greenback’ softened against several of its major rivals and extended declines against the Yen as the falling odds of the Federal Reserve tapering stimulus wore on the safe-haven currency. Yesterday William C. Dudley, the New York Fed President, intimated that he is optimistic about the recovery but refrained from issuing any bond-buying comments. A lack of pertinent global economic news could restrain the US Dollar in the hours ahead.

USD/GBP is trading in the region of 0.6207 and USD/EUR is trading in the region of 0.7401

Euro

Prior to the release of economic sentiment surveys for Germany and the Eurozone the Euro was slightly stronger against the Pound and US Dollar. If the reports show an improvement in confidence in the currency bloc the Euro could enjoy a bullish relationship with its rivals as the European session progresses.

EUR/GBP is trading in the region of 0.8388 and EUR/USD is trading in the region of 1.3515

Australian Dollar

While the ‘Aussie’ was only modestly affected by the fairly neutral minutes published by the Reserve Bank of Australia, the South Pacific asset went on to soften against the Yen as Asian stocks snapped a recent run of gains.

AUD/GBP is trading in the region of 0.5847, AUD/EUR is trading in the region of 0.6976 and AUD/USD is trading in the region of 0.9420

New Zealand Dollar

In the aftermath of the RBA minutes the ‘Kiwi’ rallied to a five-year high against the Australian Dollar. But with falling Asian stocks dampening the New Zealand Dollar’s appeal the currency pared its advance before the end of Australasian trading. The publication of New Zealand’s inflation expectation report also had an impact on the NZD/AUD pairing.

NZD/GBP is trading in the region of 0.5172, NZD/EUR is trading in the region of 0.6164 and NZD/USD is trading in the region of 0.8344

Canadian Dollar

As economic reforms in China inspired a surge of risk appetite, the Canadian Dollar was able to rally to an over five-day high against its US counterpart. In a quiet news day investors will be looking ahead to tomorrow’s Canadian wholesale sales data.

CAD/GBP is trading in the region of 0.5953, CAD/EUR is trading in the region of 0.7098 and CAD/USD is trading in the region of 0.9590

These exchange rates were correct as of 9:00 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.