The Australian Dollar has moved in a small range following the details about Operation Twist provided by the FOMC last night. The main purpose of the deal is to stimulate economic growth in the US which in turn should drive the global economy. The reason for the lack of currency movement for the Australian Dollar is that the markets had already anticipated the move. The AUD has also not moved much even though Chinese PMI data was slightly lower than expected. The figures for June came in at 48.1 which fell from 48.4 in May which was the eighth consecutive month that the figure has dropped.
All eyes will now focus on Spanish bond auctions taking place this morning and if the results are negative we could see an improvement for the Sterling vs Australian Dollar exchange rate as investors become more risk averse. The Aussie Dollar is higher than last month by approx 4% meaning the difference of £7,5000 on a AUD$300,000 currency transfer. i think we can expect the Australian Dollar to remain around these levels for the rest of the week as although many events have taken place such as the Greek elections, G20 and Bank of England minutes all have remained close to expectation which is why there has been little movement on the currency markets.
For further information please contact me directly Tom Holian [email protected] for opinions on the currency exchange rates. please quote ‘Australian Dollar Forecast’ for preferential rates when transferring Australian Dollars.