The Australian Dollar gains on hopes wider policy divergence between the RBA and other central banks.
The RBA is expected to raise interest rates again in May.
Peace mediators dismissal to Trump’s claim that strikes on Iran were paused on Tehran’s request has revived risk-off impulse.
The Australian Dollar (AUD) outperforms its major currency peers, trading marginally higher to near 0.6900 against the US Dollar (USD) during the late European trading session on Friday. The antipodean trades higher even as the market sentiment remains risk-averse due to hopes of de-escalation in the Middle East easing.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the British Pound.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
USD | 0.19% | 0.37% | 0.05% | 0.02% | 0.02% | 0.10% | 0.30% | |
EUR | -0.19% | 0.19% | -0.15% | -0.17% | -0.18% | -0.09% | 0.11% | |
GBP | -0.37% | -0.19% | -0.34% | -0.34% | -0.37% | -0.27% | -0.08% | |
JPY | -0.05% | 0.15% | 0.34% | -0.00% | -0.03% | 0.06% | 0.27% | |
CAD | -0.02% | 0.17% | 0.34% | 0.00% | -0.01% | 0.09% | 0.28% | |
AUD | -0.02% | 0.18% | 0.37% | 0.03% | 0.01% | 0.09% | 0.28% | |
NZD | -0.10% | 0.09% | 0.27% | -0.06% | -0.09% | -0.09% | 0.20% | |
CHF | -0.30% | -0.11% | 0.08% | -0.27% | -0.28% | -0.28% | -0.20% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
During the press time, S&P 500 futures are down 0.4% to near 6,450, indicating a risk-off market sentiment. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.2% higher to near 100.00.
The Australian currency gains on expectations that the pace of monetary policy tightening by the Reserve Bank of Australia (RBA) would be faster than other major central banks, as inflation in the Australian region was high even before the war in the Middle East started. According to a Reuters report, markets imply a 68% chance of a May hike and see rates reaching 4.75% by year-end.
Meanwhile, easing hopes of de-escalation in the Middle East war have underpinned the risk-off impulse. Conflicting statements by peace mediators against United States (US) President Donald Trump’s claim that the 10-day pause to planned military strikes on Iran’s power plants was requested by Iran have revived fears of a prolong Middle East war.
According to a report from the Wall Street Journal (WSJ), peace talks mediators have dismissed claims that Iran had requested a 10-day pause on strikes on its energy plants.
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