The pound Australian dollar exchange rate is 0.551% higher on the day with 1 GBP = 1.5142 AUD. The euro Australian dollar exchange rate is 0.139% higher with 1 EUR = 1.3304 AUD. This morning the Australian dollar has succumbed to poor investor sentiment on European markets. The Australian dollar is classed as a risk currency courtesy of its relationship to commodity prices which move up and down according to how bullish investors are feeling bout the global economy. This morning we see investors positioning themselves for a poor reading of the US nonfarm payroll data release. The nonfarm payrolls are widely held as one of the best indicatorson the state of the US economy. Any surprise for the better should boost the Australian dollar and send the British Pound lower. Yesterday the AUD continued its move higher despite equity markets losing ground and commodity prices coming off. A positive night for the AUD is normally a rarity under such circumstances, but the currency’s upwards momentum was established during yesterday’s Asian session with better-than-expected reads on retail sales and private capital expenditure. Having ended yesterday’s Australian session around the 1.0705 level, the AUD hit an overnight peak of 1.0765 before closing at 1.0722. Despite Australian equities trading lower during today’s morning session, the AUD held relatively firm until news broke that up to 12 US banks could face lawsuits launched by Fannie Mae and Freddie Mac over misrepresenting the quality of mortgage securities.

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