Strong Chinese Growth Data Helps The ‘Aussie’ Soar

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Pound Sterling

Although European data is thin on the ground today, Sterling held onto yesterday’s gains overnight and approaches the weekend in a stronger position against both the Euro and US Dollar. Yesterday’s surprisingly upbeat retail sales report for the UK is likely to continue supporting the Pound over the weekend.

GBP/EUR is trading in the region of 1.1826 and GBP/USD is trading in the region of 1.6183

US Dollar

In light of the 16-day Federal Shutdown, the odds of the Federal Reserve tapering stimulus before 2014 have declined dramatically, and the US Dollar has dropped with them. The ‘Greenback’ extended losses against its higher-risk peers overnight as strong Chinese growth data boosted investor confidence.

USD/GBP is trading in the region of 0.6179 and USD/EUR is trading in the region of 0.7309

Euro

While the Euro is enjoying a bullish relationship with its North American counterpart it ends the week softer against the Pound as this week’s encouraging UK data lends Sterling support. A lack of pertinent European news is likely to limit Euro movement today.

EUR/GBP is trading in the region of 0.8456 and EUR/USD is trading in the region of 1.3684

Australian Dollar

As China is Australia’s main trading partner, news that the Asian nation’s economy expanded by more than expected in the third quarter boosted Australia’s economic outlook and pushed the ‘Aussie’ higher. The South Pacific asset is now heading for its largest 5-day gain against the ‘Buck’ in over a month.

AUD/GBP is trading in the region of 0.5957, AUD/EUR is trading in the region of 0.7045 and AUD/USD is trading in the region of 0.9637

New Zealand Dollar

Although China’s surprisingly strong growth data was good news for New Zealand’s trade prospects, the ‘Kiwi’ declined as the currency’s recent advance was deemed too rapid by a technical indicator. However, the New Zealand Dollar is still poised to record a weekly gain of 1.8 per cent against its US counterpart.

NZD/GBP is trading in the region of 0.5232, NZD/EUR is trading in the region of 0.6203 and NZD/USD is trading in the region of 0.8480

Canadian Dollar

Bets that the Federal Reserve will refrain from tapering stimulus for the foreseeable future helped the ‘Loonie’ rally to a two-month high against the US Dollar during the local session. The commodity-driven Canadian Dollar is likely to experience movement following the publication of local inflation data.

CAD/GBP is trading in the region of 0.6004, CAD/EUR is trading in the region of 0.7100 and CAD/USD is trading in the region of 0.9716

These exchange rates were correct as of 09:40 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.