‘Kiwi’ achieved 2 1/2 year high against ‘Aussie’

money_united_states_dollars

Pound Sterling

Despite a better-than-expected UK services PMI report the British Pound still dropped within touching distance of a five month low against the US Dollar. Prior to this morning’s UK housing data the Pound was little changed against both the Greenback and the Euro. Although the Halifax report revealed house prices falling in January, prices were up 1.3 per cent on the year, the best rise recorded for over two years. This result may cause modest movement in the Pound in the hours ahead but investors will be waiting for Thursday’s more volatile UK news, including the BoE rate decision.

The Pound is presently trading against the Euro in the region of 1.1547 and is trading against the US Dollar in the region of 1.5642

US Dollar

After positive news in the Eurozone triggered a bout of risk talking in the marketplace the US Dollar was able to gain on a broadly softening Japanese Yen. The Dollar’s advance against its safe-haven rival was aided by the early resignation of the Governor of the Bank of Japan. The ‘Greenback’ gained by 0.8 per cent against the Yen and continued to trade higher despite a downward correction later in the day. In the hours ahead the most likely causes of movement in the US Dollar will be German factory order figures and Canadian Ivey PMI SA.

The US Dollar is presently trading against the Pound in the region of 0.6394 and is trading against the Euro in the region of 0.7390

Euro

Stronger-than-forecast services PMI figures for the Eurozone allowed the common currency to turn bullish against the majority of its most traded peers over the course of trade yesterday. The Euro’s most notable advances were against safe-haven rivals the US Dollar and Japanese Yen. The Euro climbed 100 pips against the former and 250 pips against the latter, although both pairings dropped slightly before the close of the European market. The key piece of Eurozone news scheduled for release today is German factory order data, but with the ECB’s rate decision coming up tomorrow further Euro fluctuations can be expected in the days ahead.

The Euro is presently trading against the Pound in the region of 0.8658 and is trading against the US Dollar in the region of 1.3546

Australian Dollar

An unforeseen drop in Australian retail sales pushed the ‘Aussie’ to the lowest level vs. the ‘Greenback’ seen this year. The Australian Dollar slid notably against its US counterpart and posted declines against all of its other currency rivals after a report showed a third month of disappointing retail sales, increasing the odds of the Reserve Bank of Australia slashing interest rates in March. Later today the Australian AiG performance of construction index could cause ‘Aussie’ movement.

The Australian Dollar is presently trading against the Pound in the region of 0.6595, is trading against the Euro in the region of 0.7616 and is trading against the US Dollar in the region of 1.0314

New Zealand Dollar

Following a report detailing an increase in the prices of whole-milk powder (one of New Zealand’s key exports) the ‘Kiwi’ achieved a two and a half year high against a broadly softening Australian Dollar. The ‘Kiwi’ also benefited from the expectation that today’s employment figures will show a drop in New Zealand’s jobless rate.

The New Zealand Dollar is presently trading against the Pound in the region of 0.5390, is trading against the Euro in the region of 0.6224 and is trading against the US Dollar in the region of 0.8420

Canadian Dollar

Yesterday positive data for the Eurozone and China led to risk-taking in the marketplace, allowing the Canadian Dollar to post modest gains against several of its main competitors – including the US Dollar. Rising crude oil prices also contributed to the commodity-driven ‘Loonie’ heading for its highest level against the ‘Greenback’ for a week. Fluctuations in the Canadian currency can be expected following this afternoon’s release of Ivey PMI SA data.

The Canadian Dollar is presently trading against the Pound in the region of 0.6422, is trading against the Euro in the region of 0.7416 and is trading against the US Dollar in the region of 1.0041

 

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.