Australian Dollar returns to strength as global outlook improves

The Sterling vs Australian Dollar exchange rate dropped back into the 1.51 region as US data on Friday showed that the global outlook has improved. Commodity prices have improved as the US economy grows and that the European debt crisis is easing at the moment. However, all is not as positive as it could be as China the second largest economy shows signs of slowing. If the US improves and China slows we could still see gains for the Australian Dollar but not at the rate we’ve seen over the last two years.

Watch out for US consumer confidence tomorrow which is predicted to show 70 this month. Anything above could see strength for the AUD against both the USD and Sterling. If you have a currency concern feel free to ask me a question Tom Holian