The Australian Dollar to US Dollar (AUD/USD) exchange rate advanced by 0.7% over the course of the European session.
While falling commodity prices (notably the slide in the value of crude oil and iron ore) have been keeping the Australian Dollar under pressure of late, the South Pacific currency derived some support from a rebound in gold prices on Tuesday.
Spot gold advanced by 20.60 Dollars, and industry expert Ian Walker observed; ‘The gold price pushed higher in illquid early-morning London trading on Monday on an uptick in physical demand in Asia before the end of the year, although the possibility of further monetary easing in Japan threatens to offset any moves.’
The Australian Dollar was supported earlier in the week by policy developments in China – Australia’s largest trading partner.
It was asserted that the People’s Bank of China (PBOC) intends to adjust the restrictions currently imposed on banking deposits, an alteration which would ease lending conditions and bolster China’s flagging economy.
The news saw the Australian Dollar advance across the board.
The AUD/USD exchange rate continued trading higher as the US Dallas Fed Manufacturing Activity Index came in at 4.1 in December instead of the 9.0 expected. This was down from a reading of 10.5 in November.
Another disappointing US report helped the Australian Dollar to US Dollar (AUD/USD) exchange rate extend gains on Tuesday.
The Australian Dollar to US Dollar (AUD/USD) exchange rate reached a high of 0.8199.
The US Consumer Confidence report climbed from 88.7 in November to 92.6 in December – a solid gain but not quite the increase to 94 hoped for by economists.
The sentiment report saw fixed-income strategist Guy LeBas note; ‘Although wage growth is pretty slow, job growth in 2014 has been pretty strong and lower oil prices are providing a tailwind to consumer sentiment. We’ll have another stable consumer performance in 2015.’
While the reading wasn’t disastrous, the US Dollar still eased lower against several of its currency peers after it was released.
During the Australasian session China’s final HSBC Manufacturing PMI reading for December and Australia’s Private Sector Credit stats could have an impact on the AUD/USD exchange rate.
Investors with an interest in the pairing will also be looking ahead to tomorrow’s US news, including the nation’s jobless benefits figures, pending home sales report and Chicago Purchasing Manager.
Current Australian Dollar to US Dollar (AUD/USD) Exchange Rate: 0.8194.
Current US Dollar to Australian Dollar (USD/AUD) Exchange Rate: 1.2201.
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