The Australian Dollar Forecast has taken a slight change in direction having reached the highest exchange rate since June 2012 following the European announcement of a €500bn Euro debt rescue fund. The fund is known as the European Stability Mechanism as is set up in order for countries to use if other bailout funds become unavailable. The European Financial Stability Fund still have €150bn available but that may run out before the end of the year if countries such as Spain need a bailout.
This has provided some stability within the region as has encouraged investors to again look at moving money into riskier currencies including the Australian Dollar which saw a drop of 1% during yesterday’s trading session. Columbus Day which was being celebrated in the US meant there was little movement for the US Dollar and therefore the news had a huge negative impact on the value of Sterling. This may be just a short term blip with some analysts believing we could be in for 1.60 on GBPAUD exchange rates before the end of the year if the RBA decides to cut interest rates again.
Later tonight UK time we see the release of the Westpac Consumer Confidence report which measures the level of sentiment of individuals and their feeling on the Australian economy.
For any further information about exchanging Australian Dollars or if you would like to ask me a question directly please feel free to contact me Tom Holian [email protected]