Australian dollar and New Zealand dollar in massive surge against US dollar as the sun finally comes out for the commodity currencies on global FX markets

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Category: Australian Dollar News

Written by Sam Coventry

International Money Transfers at our sister site

"Sterling is trading at 1.96 and may continue to trade fairly softly provided fears of deadlock at the EU Summit are not renewed"

The Australian dollar (Currency:AUD) has certainly made its fair share of hay, now that the sun is shining on the commodity currencies.

The Australian dollar to US dollar exchange rate is 1.51 pct up on Thursday's closing level at 1.0197.

The pound Australian dollar exchange rate is 0.83 pct down at 1.5315. (Please see our latest FX forecasts at our IMT site, access is free via this Facebook entry path).



"With concerns surrounding Spain and Italy easing somewhat, the market took its chance to target higher-yielding assets like the aussie dollar. Last night’s eurozone developments also make an RBA rate cut significantly less likely next week, which is again supportive of the aussie dollar," says a morning currency note from Caxton FX.

Sterling is trading at fresh lows below 1.54 and, according to analyst Richard Driver, sterling may struggle to find the energy for a bounce amid rallying stocks.

The Pound to New Zealand dollar exchange rate is also sharply lower at 1.9555.

After sterling had a strong session yesterday, the overnight rally in risky assets saw this pair erase its gains.

Market positivity will invariably benefit the New Zealand dollar (Currency:NZD) and so it proved last night.

"There are plenty more headlines to come out of the eurozone as we enter the second day of the EU Summit and beyond this Sunday night’s Chinese manufacturing figure will also be very important. Clearly this figure poses a downside risk as the data looks set to reveal a seventh monthly slowdown. Sterling is trading at 1.96 and may continue to trade fairly softly provided fears of deadlock at the EU Summit are not renewed," says Driver.