Pacific Exchange Rates Report for October 20th –24th

By: Patrick Gorman, The Quinnipiac University Global Economics Research Team

Pacific Currencies Index

Source: Eurostat and own calculations. Exchange rates are inverted to be USD per local currency (i.e., an increase indicates a stronger domestic currency) and then indexed to be 100 at the start of the period.

For the week of October 20^th – October 24^th, there were similar performances among the Australian Dollar (green) and the New Zealand Dollar (blue), as well as similarity among the South Korean Won (red) and the Japanese Yen (maroon). The Australian Dollar (Green) and the New Zealand Dollar (blue) rose throughout the whole week, the South Korean Won (red) and the Japanese Yen (maroon) stayed flat throughout the entire week, both ending about .3% weaker. The South Korean Won (red) and the Japanese Yen (maroon) steadily increased throughout the week, with the Yen ending the week about 1.7% stronger and the Won ending the week about 1.3% stronger.

Pacific Historical Trends

Source: Eurostat and own calculations. Exchange rates are inverted to be USD per local currency (i.e., an increase indicates a stronger domestic currency. The center line is a rolling three-month average. The upper and lower boundaries are the average plus and average minus one standard deviation, respectively, for the same three-month period.

For the week of October 20^th – October 24^th, all currencies have followed their recent pattern of increases. The Japanese Yen (JPY) bounced back to near three-month highs, while the South Korean Won (KRW) also hit three-month highs. The Australian Dollar (AUD) stayed about where it has been in the past weeks while mildly fluctuating. The New Zealand Dollar (NZD) had a small decrease; however, it is still higher than where it started the month.

Additional Reading

Australian Dollar Outlook: AUD/USD Eyes Volatility Ahead of Fed, AU CPI

This article talks about the potentially volatile trading week ahead for the AUD/USD exchange rate. There are many important things coming out for both currencies, including the US Federal Reserve decision, advances in the US-China trade talks, and Australia’s quarterly inflation report.