Forex News Now: Australian Dollar Broadly Weaker after Rate Announcement

Published: 3 Feb at 12 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada,

Pound Sterling
Over the course of Tuesday’s European session, the Pound Sterling to Euro exchange rate climbed by 0.1% while the GBP/USD pairing gained 0.2%. Demand for the Pound improved after the UK’s Construction PMI increased by more-than-expected, although gains were limited ahead of the Bank of England’s interest rate decision.

US Dollar
Yesterday’s US ISM Manufacturing Index showed an unexpected decline, but as investors still predict the Federal Reserve will be the first major central bank to increase interest rates this year, the ‘Greenback’ continued trending in a stronger position against its peers.

Euro
A sharp declination in the Eurozone’s producer price index at the close of last year pushed the common currency slightly lower against both the US Dollar and Pound. Further Euro movement is likely to occur tomorrow as the Eurozone publishes final services/composite PMI figures for the region and its largest economies.

Australian Dollar
Both the AUD/GBP and AUD/USD pairings sank to multi-year lows in the wake of the Reserve Bank of Australia’s decision to cut the benchmark interest rate by 25 basis points. The central bank asserted that the comparative strength of the ‘Aussie’ was one of the reasons behind the decision.

New Zealand Dollar
Ahead of the release of New Zealand’s employment figures, the New Zealand Dollar was trading in a broadly softer position. The ‘Kiwi’ posted widespread declines as investors bet that the Reserve Bank of New Zealand will be the next major central bank to cut borrowing costs.

Canadian Dollar
Although Canada’s manufacturing report fell short of expectations on Monday, the Canadian Dollar rallied against the Pound as the price of oil increased. While movement in the commodities market will continue to drive the ‘Loonie’, investors will also be taking an interest in Canada’s Industrial Produce Price/Raw Materials Price indexes.
As of Tuesday, 3rd February 2015, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.3215, GBP USD exchange rate was 1.5141, GBP AUD exchange rate was 1.9508, GBP NZD exchange rate was 2.0655, and GBP CAD exchange rate was 1.884.

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