The ‘Kiwi’ was little changed against its major counterparts

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Pound Sterling

With the Debt Management Office preparing for a UK government bond sale and Bank of England Governor Mervyn King testifying to the Treasury Committee for the final time the Pound was moderately stronger against the US Dollar and Euro as the European session opened. In a volatile market Sterling could experience more movement in the hours ahead.

GBP/EUR is trading in the region of 1.1755 and GBP/USD is trading in the region of 1.5441

US Dollar

As Chinese economic concerns pushed investors towards save haven assets, the US Dollar continued to trade strongly against its peers. The ‘Greenback’ was also supported by the expectation that US durable-goods orders and house price data will show improvement. However, with two Federal Reserve Presidents stating that economic policy remains accommodative the US Dollar did lose ground against the Yen.

USD/GBP is trading in the region of 0.6477 and USD/EUR is trading in the region of 0.7613

Euro

With Greece swearing in a new Cabinet later today and European Central Bank President Mario Draghi due to speak in Berlin, the Euro was fairly static as the local session began. The common currency consolidated its position above 1.31 US Dollars, but remains under pressure ahead of some influential US data releases.

EUR/GBP is trading in the region of 0.8506 and EUR/USD is trading in the region of 1.3133

Australian Dollar

During the local session the ‘Aussie’ experienced significant volatility, fluctuating notably against its US counterpart as concerns regarding the economic situation in China (Australia’s major trading partner) grew. Australian bonds were able to rebound after Federal Reserve Presidents intimated that investors were overreacting to the central bank’s hints regarding slowing bond purchases.

AUD/GBP is trading in the region of 0.6004, AUD/EUR is trading in the region of 0.7046 and AUD/USD is trading in the region of 0.9255

New Zealand Dollar

The ‘Kiwi’ was little changed against its major counterparts during Australasian trade. With domestic news limited until tomorrow, New Zealand Dollar movement is most likely to occur as a result of US data – including this afternoon’s consumer confidence, durable-goods orders and new home sales figures.

NZD/GBP is trading in the region of 0.5017, NZD/EUR is trading in the region of 0.5889 and NZD/USD is trading in the region of 0.7765

Canadian Dollar

As the possibility of the US Federal Reserve tapering stimulus continued to weigh on the Canadian Dollar, the commodity-driven currency weakened to an almost two-year low against the ‘Greenback’. Today’s US data is likely to be a catalyst for further ‘Loonie’ fluctuations. If the US figures should meet or exceed estimates the Canadian Dollar could continue to weaken.

CAD/GBP is trading in the region of 0.6181, CAD/EUR is trading in the region of 0.7267 and CAD/USD is trading in the region of 0.9548

These exchange rates were correct as of 9:20 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.