The Aussie Consumer Inflation Expectation data is published overnight tonight and may see some substantial Aussie movement depending on the outcome. The previous figure was 3.3% and expectations are for something similar- however a sharp variation from this level could see a substantive move in Aussie Dollar exchange rates. The higher the consumer expectations, then the more likely the RBA are to hike interest rates, which will see AUD strengthen. However a very low figure may start calls for an interest rate cut which would have the revers effect.
The Aussie has strengthened against the pound and the US Dollar up until this week where it has softened slightly. Earlier in the year the RBA cut interest rates amidst fears over a slow down in Chinese demand and problems in Europe. In recent weeks Chinese data has been a bit more positive and the RBA have resisted the temptation for any further cuts with none expected imminently based on their recent policy statements. This has resulted in the Aussie retaining its strength and pushing back to the near 30 year high against the pound. The inflation data tonight will give more clues as to whether currency traders need to be wary of the hint of a rate cut being put back on the agenda- if you need to buy Aussie dollars then keep an eye out just in case.
If you want to transfer money to Australia or need to sell Aussie Dollars then by all mean feel free to contact Colm at [email protected] quoting ADF in the subject matter and a brief overview of what you need to do. I would be more than happy to have a look at how best to approach your currency exchange and provide you with some indicative exchange rates should you wish to use our award winning service. Best of all it is free and carries no obligation to trade.