EN:Pound continues to advance against battered Australian dollar
The pound to Australian dollar exchange rate is 0.774% higher with 1 GBP = 1.5152 AUD.
The pound to New Zealand dollar exchange rate is 0.940% higher with 1 GBP = 1.8864 NZD.
The Australian Dollar continues to take a beating on the currency markets, as the global economic outlook continues to sour.
This mixed with a refusal by the RBA to lift interest rates and the view that recent Australian dollar gains may have been overdone have conspired to push the Aussie lower.
So, for those looking to transfer money to Australia this could be a good time to get in touch with your money transfer broker.
"The aussie dollar continued to suffer from the lack of a rate hike from the RBA and more importantly, the lack of indication of a rate hike in the near future. Recent high aussie inflation took an interest rate cut off the table but this is now being priced back in due to concerns over global growth and the eurozone debt situation," says a note from exchange rate analyst Richard Driver at Caxton FX in London.
Australian retail sales data was disappointing in the overnight session, showing a contraction. Australian trade balance data also undershot expectations to add weight to the Australian dollar.
With concerns over global growth dominating market movements at present, commodity currencies are suffering and this pair is trading up at 1.5150 with risks to the upside.
New Zealand dollar
The kiwi dollar sold-off in the overnight session as risk aversion finally hit the Antipodean currencies.
Poor recent data from the US has really diminished appetite for traditionally ‘risky’ currencies (though they are in fact attached to more economic and fiscally stable countries at present). Equities are weak and the kiwi dollar is suffering a downward correction. In addition Fonterra, the country’s major exporter, saw another fall in diary prices.
This evening brings news from the New Zealand labour market, which is expected to show a downturn. This pair is trading at 1.8850 and again, risks are to the upside with risk aversion likely to persist.
