- Category: Australian Dollar Articles
- Published on Tuesday, 22 January 2013 12:04
- Written by Will Peters
The Australian dollar (Currency:AUD) has today benefited from cross buying against the Yen; this after the Bank of Japan announced that it will adopt a 2% inflation target and an open-ended asset purchase programme.
That said the market has been a left a little disappointed by the asset purchase amount of JPY 10trn and USD/JPY, along with AUD/JPY and NZD/JPY has come back off marginally.
The pound / Australian dollar exchange rate is a quarter of a percent lower at 1.5018. Earlier this morning we witnessed GBP/AUD crash through the 1.5 level. Judging by sterling's recent performances we would expect a determined push lower to happen sooner rather than later.
The euro / Australian dollar exchange rate is 0.25 pct down on Monday night's closing level; EUR/AUD is at 1.2630.
The Australian dollar / US dollar exchange rate is 0.51 pct down at 1.0570.
Please note these are spot market rates and your bank will add a discretionary spread. To get as close to the spot market rate as possible please enquire.
AUD/USD to be rangebound?
|Live Charts and
Aus Exchange Rates
Hamish Pepper at Barclays today forecasts the Australian dollar to settle into a rangebound pattern as it trades against the US dollar:
"We expect AUD/USD to trade in a relatively symmetrical and narrow range for the rest of the quarter, reflecting countervailing forces, before grinding lower over the remainder of the year."
Pepper says AUD/USD is likely to remain supported near term as global risk sentiment continues to improve on the back of diminishing global tail risks (eg, the US fiscal cliff, eurozone and China growth concerns).
Most recently, Congressional Republican leaders reportedly announced their intention to increase the debt ceiling until April, reducing the potential for a risk sell-off driven by US political gridlock this quarter.
"At the same time, significant near-term AUD/USD appreciation is unlikely, with Australian inflation data this week likely to confirm that the RBA’s easing bias remains appropriate. Domestic activity indicators remain mixed, and Australia-US interest rate differentials suggest AUD/USD should be lower, in our view," says Pepper.
Related: Pound / Aus Dollar
- Australian dollar under the cosh as iron ore prices slump; New Zealand dollar continues to enjoy benefits of buoyant dairy industry
- Pound sterling down versus Australian and New Zealand dollar's today; but 'weakening AUD drivers remain in place'
- Outlook for the Australian dollar likely to be driven by expectations over interest rate cuts at the Reserve Bank of Australia
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