Potential US Federal Shutdown Sees Aussie, Kiwi And Euro Fall

Published: 30 Sep at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany, Italy, Japan, South Africa,

Pound Sterling
GBP/EUR – Trading in the Region of 1.1955
The Pound extended its advance on the Euro and strengthened against the US Dollar as UK house prices were shown to have jumped by the most for six years. Sterling could see additional movement following the publication of UK mortgage approvals data, but US news will remain firmly in the spotlight.

US Dollar
USD/EUR – Trading in the Region of 0.7413
With the clock ticking and no sign of the US government resolving its budget issues, a federal shutdown is becoming increasingly likely. As investors flock to safe-haven assets the US Dollar has risen against several of its higher-risk peers, although the ‘Greenback’ did slump to a month-low against the Yen.

Euro
EUR/USD – Trading in the Region of 1.3489
Prior to the publication of inflation figures for the Eurozone the Euro consolidated declines against the Pound and weakened against the majority of its most traded rivals. Italian political concerns are weighing heavily on the common currency this morning, and the news that German retail sales advanced by less-than-expected did little to support the Euro.

Australian Dollar
AUD/USD – Trading in the Region of 0.9297
Overnight the ‘Aussie’ dropped against its British and US counterparts as Australia’s trade outlook was dented by some disappointing Chinese manufacturing data. The Australian Dollar was also adversely affected by declining risk-appetite ahead of the US budget deadline.

New Zealand Dollar
NZD/USD – Trading in the Region of 0.8266
Although a gauge of business confidence for New Zealand climbed from 48.1 to 54.1 in September, the ‘Kiwi’ weakened during Australasian trading as US concerns and below estimate Chinese manufacturing data weighed on the New Zealand Dollar.

Canadian Dollar
CAD/USD – Trading in the Region of 0.9697
The ‘Loonie’ begins the week trading lower against its US counterpart. While US budget developments will be the main driver of market movement today, the commodity-driven Canadian Dollar is likely to fluctuate in response to domestic growth data.

Japanese Yen
USD/JPY – Trading in the Region of 97.8200
As US budget fears pushed investors towards higher risk assets the Japanese Yen posted widespread gains and strengthened to a month-high against the ‘Greenback’.

South African Rand
USD/ZAR – Trading in the Region of 10.1420
The Rand weakened beyond the psychological 10 Rand per Dollar level overnight as higher-risk assets lost their appeal ahead of the US budget deadline. Today’s South African trade balance figures could also inspire Rand movement in the hours ahead.
As of Monday, 30th September 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1973, GBP USD exchange rate was 1.6191, GBP AUD exchange rate was 1.7379, GBP NZD exchange rate was 1.9533, GBP CAD exchange rate was 1.6715, GBP CNY exchange rate was 9.911, GBP JPY exchange rate was 159.232, and GBP ZAR exchange rate was 16.2568.

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