Australian Dollar Article List

The euro to Australian dollar exchange rate is 0.6 pct higher at 1.3452.
The pound to Australian dollar exchange rate is 0.55 pct up at 1.5732.
The Australian dollar to US dollar exchange rate is 0.36 pct lower at 0.9581.

(These rates come from the wholesale markets - your bank will affix their own discretionary spread to the figures. However, an independent FX provider will guarantee to beat your bank's offer, thus delivering more currency. Find out more here.)

"Iron ore prices have dipped to a six-month low, in line with concerns over the slowdown being seen in China. Further losses are likely, which is bad news for Australia’s exporters," says Richard Driver at Caxton FX giving his verdict on the under-pressure Australian currency.

Of little help was last night’s Australian construction data showed an unexpected 2.0% monthly contraction, which has ensured further AUD-weakness.

Total private construction declined 1.1% q/q and public construction was a sharp 5.4% q/q lower.


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Private engineering construction declined 1.1% q/q, while non-residential building declined 1.4% q/q and residential building fell 0.8% q/q.

"For monetary policy, tomorrow’s private CAPEX release is more important than today’s figures as it will provide an update on firms’ investment intentions for 2013-14. The investment outlook for non-mining firms will be the key focus and we see little chance of a significant upgrade given below-average business confidence and substantial current spare capacity in the non-mining economy," say ANZ Research in a currency note to clients.

GBP/AUD trades up at new 2013 highs of 1.5750.
    
The New Zealand dollar (Currency:NZD) is meanwhile looking a sight firmer than its Australian counterpart.

The pound to New Zealand dollar exchange rate is 0.18 pct higher at 1.8662.
The New Zealand dollar to US dollar rate is 0.02 pct lower at 0.8077.

"NZ’s booming dairy sector was given a boost last night by some higher forecasts for milk prices and as always for these commodity-linked currencies, higher prices are good news. This does come with the caveat that Fonterra does reckon milk prices are peaking," says Driver.

GBP/NZD continues to trade at familiar levels close to 1.86 and a bounce could occur soon in the opinion of CaxtonFX.