The pound to Australian dollar exchange rate is 0.099% lower with 1 GBP = 1.5781 AUD. The euro to Australian dollar exchange rate is 0.681% lower with 1 EUR = 1.3800 AUD. Deutsche Bank (NYSE:DB) have this morning released a note looking at the Australian dollar exchange rate and the key drivers behind its value. Deutsche Bank note how the narrowing in Australia’s current account deficit and the diminished universe of “AAA” currencies are but two of the reasons for thinking AUD’s relationship with global risk sentiment may have changed. "While we find little evidence though that AUD’s day-to-day relationship with risk sentiment has changed – it remains a highly risk-sensitive currency - there does appear to be a “structural” aspect to AUD’s strength. We find broader AUD moves are increasingly related to moves in key metals such as copper," say Deutsche Bank. The note goes on to say that, "in our view these are the key prices to watch in judging AUD’s vulnerability to weakening global growth prospects. "While a retest of the year’s lows in AUD/USD below 0.98 seems increasingly likely, falls beyond this point will then be dependent on how metals prices move from here (noting also the signal they give on the RBA outlook)."

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