Exchange Rates

The pound sterling to Australian dollar exchange rate is 0.7 pct lower than seen at last night's closing level; GBP/AUD is quoted at 1.6728.Sterling is still 7.5 pct up since the 1st of January.

(Please note that your bank will access the above market rates but will sell on currency to you at another rate; this spread is where they make their money. However, an independent FX provider can also access currency at the above rates BUT will actively undercut the offer made by your bank, thus delivering you up to 5% more currency. Please find out more here.)

The Aus dollar is today's standout currency

On the economic front the Aussie was the standout of the day rising to just within a whisker of the 9550 level after the release of the RBA minutes which confirmed that Aussie central bank has moved away from its easing bias.

In its minutes the RBA noted that there is a substantial degree of policy stimulus and that it will continue to gauge its effects. For now the RBA noted that the rate cut is not imminent, but it left open the possibility for further rate cuts if needed.

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"Still the RBA's stance has clearly become less dovish as conditions in Australia have improved and markets now assign a very small chance of a rate cut in 2013. The news boosted the Aussie which has been bumping up against the 9500 level for several days and with the pair now through that barrier it could rally towards the 9700 figure over the next several weeks if the situation in US stabilises and global risk appetite returns," says a morning comment from UK Forex on the matter.

Outlook for the Austrlaian dollar

Turning to the outlook for the Aus dollar, we note the picture is turning more constructive.

Luc Luyet at MIG Bank gives us a rundown on the headline AUD/USD exchange rate:

"AUD/USD has broken to the upside out of its horizontal range between 0.9388 and 0.9485. Further short-term strength towards the resistance at 0.9666 is likely. Monitor the resistance at 0.9529. An initial support is at 0.9478 (intraday low).

"In the medium-term, the break above the strong resistance at 0.9345 (26/06/2013 high) confirms an improving medium-term technical
structure. However, the long-term technical pattern remains negative thus far.

"Therefore, we expect the strong resistance at 0.9843 (21/05/2013 high, see also the 200 day moving average) to cap the medium-term upside potential.