The Australian Dollar Forecast has remained range bound even after some data from China that the manufacturing sector has expanded for the first time in 3 months. Recently Chinese GDP has slowed to 7.4% and there has been signs of a slowdown which has had a recent negative effect on the Australian Dollar. Chinese PMI data rose to 50.2 in October from 49.8 in September, anything above 50 shows expansion in the sector. Infrastructure and monetary easing taken by the Chinese has seen the general economy improve and I feel next month’s GDP will also be strong for China which could see the Aussie Dollar strengthen.
With less than a week to the US election and with Obama and Romney seemingly neck and neck the currency markets are holding their breath before the news. Personally I think if Obama gets in we’ll see Dollar strength as it will provide stability but if Romney gets in I think it will provide a period of uncertainty and therefore some USD weakness which could cause the Australian Dollar to weaken as with global uncertainty this detracts from investors putting money in Australia.
It could be argued that during Hurricane Sandy and with the uncertainty in the US surrounding the election that Sterling has been the main benefactor in the currency markets as investors seek solace in the safe haven of the Pound. This has seen GBPAUD exchange rates hit 1.5550 this afternoon. In the last week or so we have seen a gradual improvement for Sterling vs AUD but as stated I think next week we will see some short sharp movements so if you have a currency transfer to make shortly get in touch to find out how to save money on your AUD exchange rates. Email me directly Tom Holian [email protected]