24th March 2014

AUD, NZD and EUR fluctuate after mixed PMI reports


Pound Sterling

Australian dollar exchange rate

With UK news thin on the ground today Pound movement may be limited. Sterling begins the week in a softer position against the Euro and US Dollar, but could recoup losses if this week’s British inflation data and retail sales report surprise to the upside.

GBP/EUR is trading in the region of 1.1981 and GBP/USD is trading in the region of 1.6491

US Dollar

The expectation that the Federal Reserve will increase interest rates in the near future lent the US Dollar underlying support over the weekend. Further ‘Greenback’ movement could occur in response to today’s Preliminary US Markit PMI for March. Economists have forecast that the gauge slid from 57.1 in February to 56.5 in March.

USD/GBP is trading in the region of 0.6064 and USD/EUR is trading in the region of 0.7264

Euro

Euro fluctuations occurred as European trading progressed and patchy services/manufacturing PMI data for the Eurozone was published. While the reports showed improvement in France, inflation concerns were raised – adding to the case for the European Central Bank introducing additional stimulus.

EUR/GBP is trading in the region of 0.8347 and EUR/USD is trading in the region of 1.3767

Australian Dollar

A fifth month of contraction in China’s manufacturing sector initially pushed the Australian Dollar lower against its major currency counterparts. However, the ‘Aussie’ recovered losses overnight and closed the local session little changed.

AUD/GBP is trading in the region of 0.5525, AUD/EUR is trading in the region of 0.6619 and AUD/USD is trading in the region of 0.9096

New Zealand Dollar

Like its Australian counterpart, the ‘Kiwi’ came under pressure following the release of disappointing economic data from China. This week the main domestic report to be aware of is New Zealand’s trade balance figures, due out on Wednesday.

NZD/GBP is trading in the region of 0.5174, NZD/EUR is trading in the region of 0.6195 and NZD/USD is trading in the region of 0.8536

Canadian Dollar

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While the ‘Loonie’ held on to last week’s gains over the weekend, the commodity-driven currency could shed gains against a bullish US Dollar depending on the outcome of today’s US manufacturing report. Canadian reports are limited in the days ahead.

CAD/GBP is trading in the region of 0.5404, CAD/EUR is trading in the region of 0.6473 and CAD/USD is trading in the region of 0.8914

These exchange rates were correct as of 12:00 GMT


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