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The ‘Aussie’ was higher against several of its peers on the back of better-than-expected trade data. The Australian Bureau of Statistics said that the country’s trade deficit narrowed to A$284 million in September from the A$693 million recorded in August. Economists expected a September deficit of A$500 million.
The Pound has strengthened for a third consecutive day against the US Dollar and hit a one-month high against the Euro ahead of the release of data which is expected to show that industrial production in the UK expanded in September. The currency is also continuing to benefit from yesterday’s services data which showed that the sector expanded at its fastest pace in sixteen years in October.
The US Dollar is trading weaker against the majority of its most traded peers despite increasing expectations that the Federal Reserve could choose to begin tapering its monetary easing programme sooner than expected as recent data releases suggest that the economy is improving. The ‘Greenback’ retreated from a six-week high against the Euro after traders speculated that the single currency’s recent decline was too rapid.
Yesterday saw the currency tumble against its peers after the EU cut its forecast for growth in the region. The Euro managed to rally against the US Dollar as investors raised their expectations for the European Central Bank to refrain from cutting interest rates when policy makers meet tomorrow, and after traders said that the currency’s fall was too rapid.
New Zealand Dollar
The ‘Kiwi’ rose to a two-week high against a number of peers due to the release of better-than-expected jobs data. The number of people in work in New Zealand climbed by 1.2% in the third quarter of the year beating economist forecasts for a 0.6% rise. The overall unemployment level fell to 6.2%. The upbeat data added to expectations that the nation’s Central Bank will hike the official cash rate from its record-low of 2.5% next year.
The Canadian Dollar is weaker against the Pound and the majority of its most traded peers as the currency remained under heavy pressure from the slide in the value of crude oil, Canada’s biggest export.
South African Rand
The Rand managed to recover some ground against the US Dollar after being boosted by dovish remarks made by Federal Reserve policy makers. Expectations that the Fed will not taper its easing programme until next year has helped the Rand which benefits from a weaker US Dollar. Despite the brief rise this morning, the currency remains highly vulnerable to global risk sentiment and ongoing strikes in the mining sector is weighing upon demand for the Rand.