Positive tone from the RBA leads to Australian Dollar strength overnight

The Australian Dollar has had a fairly solid 24 hours or so following on from the RBA (Reserve Bank of Australia) interest rate decision overnight.

No changes to interest rates were made and the interest rate level remained at 1.5% for the 23rd consecutive month, however it was the tone of the RBA that sparked the strength for the Australian Dollar against most majors.

The Australian Dollar has been one of the top performers of the trading day due to the outlook going forward. Currencies quite often move on speculation as well as fact, and many analysts had been expecting another fairly damp overview from the RBA meeting minutes.

What they actually received was a fairly positive report, citing that they now expect wage growth to improve and in fact that they felt that this had now troughed, and with reports of skills shortages in certain areas there is now an expectation from the RBA that wage growth will start to naturally rise and this should drag the economy up with it.

The Australian economy has had a mixed year so far, whilst there has been nothing to panic about the economic data that has been released has not exactly been fantastic, and throw into the mix the issues with Donald Trump with Trade Wars and the potential issue over North Korea earlier in the year and you can see just why the Australian Dollar has had a shaky 6 months.

Political tensions and larger global problems can also weaken the Australian Dollar as it is perceived as a ‘riskier’ currency, so global issues can decrease investors attitude to risk and therefore weaken the Australian Dollar when they occur.

There is little to come out in terms of Australian data in the coming days, but for those of you looking to carry out an exchange involving the Australian Dollar then non-farm payroll data in the U.S on Friday, which measure employment in America will be your next one to watch, as this can also impact global attitude to risk.

Should you need to carry out an exchange involving Australian Dollars and you would like to maximise your exchange then feel free to contact me (Daniel Wright) directly and I will be able to assit you with the timing of your transfer and ensuring that you get a great rate of exchange too. Feel free to email me on djw@currencies.co.uk and I will be more than happy to contact you personally to discuss the options available to you.

For more news on foreign exchange rates and to request a free no-obligation quote visit www.currencies.co.uk