Australian dollar falls due to Reserve Bank of Australia (RBA)

Published on June 27, 2011 by admin · No Comments

Foreign Exchange Overnight/Morning Ranges:

Rates EUR/USD 1.4102 – 1.4208

Rates GBP/USD 1.5913 – 1.5966

Rates GBP/EUR 1.1234 – 1.1289

In most cases all three dollar bloc currencies generally tracked the equity markets during the week. However, AUD was generally weaker, dragged down by falling commodity prices and signs that the Reserve Bank of Australia (RBA) is in no hurry to hike rates again. NZD held up rather well, as the New Zealand economy shows signs of rebounding from the damage of the Christchurch earthquake. The Canadian dollar ended the week nearly unchanged against the greenback, while NZD rose about 1% and AUD dropped about 0.5%.

The euro is under pressure as we start the week, trading at a new low against the Swiss franc as investors remain extremely nervous over the euro zone debt situation. With the Greek government due to vote Thursday on a new set of austerity measures, and the deputy prime minister Theodor Panglos telling a Spanish newspaper that the vote is “on a knife edge” the markets remain extremely nervous. Not even a vote of confidence for the euro zone from the Chinese authorities (again)widely reported in the Sunday newspapers and on the wires is helping the euro this morning.

The pound is still trading within its recent ranges against the euro, but at the low end of its trading range against the dollar of the last five months.MPC member Adam Posen is due to give a speech this evening in Aberdeen at 18.00 with his comments likely to be closely monitored.

EUR/USD currently 1.4153. Support 1.4000, resistance 1.4350.

GBP/USD currently 1.5943. Support 1.5930, resistance 1.6180.

GBP/EUR currently 1.1266. Support 1.1110, resistance 1.1350