Data that may affect the AUD this week

Australian Dollar Forecast Set for Bleak End to 2020

Today AUD rates have weakened against a number of currencies notably posting losses against the pound by o.5% – but what is likely to happen to the dollar this week and what data is likely to affect it?

Overnight we have a key data set with the release of the RBA Monetary Policy Statement. This is released by the Reserve Bank of Australia and reviews economic and financial conditions to help determine the appropriate stance of monetary policy. This is key for anyone with a short term requirement involving the Australian dollar as it will give an insight into the RBA’s thoughts with regards to short – medium term interest rate movements. In recent months rumours have been rife that the RBA will be cutting rates, however this has yet to happen. The RBA appear to be keeping their cards very close to their chest but do not appear to be ruling out an interest rate cut in the coming months. This report may well confirm this view and therefore I believe the recent trend we have seen with the AUD weakening could well continue.

Later this week on the 19th we also have business confidence levels for Q1 – this is a current survey of business conditions within Australia and will give a good insight into short term growth projections for Australia. This figure could be down following the latest GDP data from China.

This blog is written by currency brokers to help assist individuals and business’ alike make a decision as to when might be best to convert your currency. Should you wish to discuss your transaction in more detail or wish to run through my opinions on the short term projections for the AUD then please email Michael at mgv@currencies.co.uk