The Australian Dollar remains strong against the Pound even though the problems in Europe mean that investors are wary about hugely committing to the Australian Dollar. The problems in Europe have also meant that Sterling is being used as a safe haven which has kept the Pound relatively strong against many currencies and meaning that the GBPAUD exchange rate has not yet broken below 1.50. Spanish bonds have risen to worrying highs and yesterday hit 7.56% a Eurozone record. The release of Chinese PMI came out at 49.5 which although represents contraction it was higher than the previous month which was 48.2. The slightly higher than expected reading meant that as long as China continues to grow this could keep the Australian Dollar supported not just against Sterling but also against Japanese Yen, US Dollar and the Euro.
Central Bank Governor Glenn Stevens has said today in a speech that Australia is in a good position to avoid the global financial crisis and should continue with its current economic policy. The banks seem to be holding up well even though some had made poor lending decisions but he also went to say that the RBA can and will stimulate the economy if necessary. The growing Chinese economy has seen a large demand for energy and resources which has pushed Australia’s trade to all time highs which has supported the Australian currency.
For further information or if you would like a free quote to buy or sell Australian Dollars please contact me Tom Holian [email protected] quoting ‘Australian Dollar Forecast’ in the title.