The Australian Dollar to US Dollar (AUD/USD) exchange rate remained bullish throughout trading on Tuesday, thanks to Australian developments and some below-forecast figures from the United States.
The Australian Dollar advanced on its US peer during the local session as Australian retail sales leapt by 1.2% on the month (defying expectations for an increase of 0.3%) and the Reserve Bank of Australia (RBA) delivered a predictably neutral interest rate announcement.
The central bank kept rates on hold, as expected, and modestly altered its comments on the detrimental impact of a strong Australian Dollar.
According to economist Michael Blythe; ‘The RBA’s desire for a period of stability has been reinforced in recent months. One key change is that the RBA is now promoting macroprudential measures to take the heat out of the key parts of the housing market. This shift indicates a greater reluctance to use interest rates than we had thought likely.’
The AUD/USD exchange rate held gains into the North American session as demand for the ‘Greenback’ declined in the wake of below forecast trade data.
It had been expected that the US trade deficit would widen slightly in September, increasing from 40.0 billion US Dollars to 40.2 billion US Dollars. However, the deficit actually swelled to 43.2 billion US Dollars due to an easing in export levels.
This, plus a 0.6% decline in US factory orders, left the US Dollar struggling against the Australian Dollar ahead of Friday’s US Non Farm Payrolls report.
The Australian Dollar to US Dollar (AUD/USD) exchange rate is currently trending in the region of 0.8715.
With the ‘Aussie’ strengthening across the board, the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was able to push higher over the course of the European session.
The Pound weakened against several of its most traded currency counterparts following the publication of the UK’s Construction PMI.
Given that the nation’s manufacturing gauge surprised to the upside on Monday, investors had been hoping for a similarly uplifting result for the construction sector.
However, the index actually fell short of forecasts, coming in at 61.4 in October – below the 63.5 level forecast and down from September’s 64.2.
The report saw David Noble of the Chartered Institute of Procurement & Supply observe; ‘This month the construction sector maintained an impressive growth trajectory and true grit with continuing strong levels of new business, albeit at a slower pace. Though it appears that the euphoria of the last few months is now settling down to a slightly more modest level of expansion, delivery times continue to lengthen and suppliers of raw materials are in high demand, making the completion of construction projects more challenging and showing how the number of available suppliers has not yet reached pre-recession levels.’
Overnight the AUD/GBP exchange rate could fluctuate in response to the AiG Performance of Services Index and China’s HSBC Services/Composite PMI.
The British Retail Consortium’s Shop Price Index will also be of note to investors with an interest in the Australian Dollar to Pound Sterling exchange rate.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.5448.
Disclaimer: Currency-Converter.com.au and its data provider, TorFX, make no claims regarding the validity or exactness of the information provided in on this site and will not be held liable for any use, interpretation, or other implementation of the information provided. Currency-converter.com.au make no warranties, express or implied, as to results to be obtained from use of such information, and make no express or implied warranties of condition, quality, performance, merchantability or fitness for a particular purpose or use. Currency-converter.com.au shall not have any liability for the accuracy of the information contained in the services provided or ommissions there in which are made available on a free, as-is basis. None of the aforementioned parties shall be liable for any third party claims or losses of any nature, including, but not limited to, lost profits, punitive, consequential, special, incidental, indirect or similar damages even if advised of the possibility of such damages. Rates offered are interbank rates and may not be the same as offered by your financial institution, and do not include commissions. Rates shown on this site will vary from those provided by TorFX or other providers linked to from this site.