Aus Dollar & NZ Dollar: US Data Forecast To Alter GBP to AUD NZD Exchange Rates

November 13, 2014 - Written by John Cameron

STORY LINK Aus Dollar & NZ Dollar: US Data Forecast To Alter GBP to AUD NZD Exchange Rates

The so-called CBOE VIX index ‘Fear Gauge’, which measures the number of protective ‘put’ orders which US equities traders are applying to their transactions, has remained at rock-bottomed levels during today’s session.

VIX spiked at above the 30.00 threshold during the middle part of last month as investors panicked at the thought that the deadly Ebola virus might be about to take hold in Western nations.

Concerns about a pronounced downturn in the euroland’s vast economy added to the mood of gloom enveloping the markets.

The intervening period has seen the international community launch concerted efforts to tackle Ebola, while the European Central Bank has increased an even looser set of monetary policy measures aimed at increasing inflation in the euro area and upping the pace of expansion of the region’s economy.

The Pound to Australian Dollar exchange rate: GBP/AUD conversion is -0.55 pct lower at 1.80064.
The Pound to Euro exchange rate converts -0.64 per cent lower at 1 GBP is 1.26054 EUR.
The Pound to New Zealand Dollar conversion rate is -0.74 pct lower at 1.99074 GBP/NZD.
The Pound to US Dollar conversion rate is -0.22 pct lower at 1.57343 GBP/USD.

VIX Tumbles, Australian & New Zealand Dollar Exchange Rate Jump

The result has seen VIX drop back to as low as 12.38 this week – its lowest level since the middle part of September. Although the key indicator has tipped the scales at between the 10.00 and 11.00 thresholds at times during the early part of Summer, the increased appetite for risk which has accompanied the drop in fear levels has favoured the Commodity Dollars.

The development has sent the Pound Sterling Australian Dollar exchange rate briefly drop below the psychologically significant 1.8000 GBP AUD level earlier today, while the Sterling New Zealand Dollar exchange rate is currently sitting in the 1.9900s GBP NZD, having breached the 2.1000 threshold within the past few weeks.

Analysts forecast that a continuation of the shift lower for the VIX index will bring renewed losses for both the GBP AUD and the GBP NZD exchange rates.

US Data Forecast To Alter AUD & NZD

Looking ahead, a brace of economic releases in the States tomorrow afternoon have the potential to further alter market sentiment.

Economists predict that October’s Advance Retail Sales numbers in the States will point to a pronounced bounce-back from September’s counterpart measure, while the latest Michigan Confidence survey is expected to show a similar improvement.

If these two figures do indeed please market participants, then look for the Pound Sterling to record further losses against both the Australian Dollar and New Zealand Dollars.

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