Australian dollar exchange rates have continued to show volatility shifting over a cent from the high/low against bit the Euro and Pound peaking at a high of 1.5324 EUR/AUD and 1.8466 GBP/AUD, however this afternoon the Aussie has clawed back ground and at time of writing is sitting at 1.5245 EUR/AUD and 1.8350 GBP/AUD.
This evening the volatility may well continue with a speech from FED member Charles Evans and the release of the FED beige book. This shows a detailed report and economic analysis of the US economy, this along with Charles Evans speech will give clues as to where the FED is with the tapering of QE. Positive sentiment is likely to weaken the AUD as it will suggest that further tapering could be just around the corner.
Looking at other data of not will be Australian unemployment figures overnight. Figures are forecast to remain at 5.8% – any deviation and again expect further volatility. Should you be looking at EUR/AUD then tomorrows European Central Bank’s monthly report should be closely monitored. This is very similar to the beige book and will contain a detailed analysis of the prevailing economic situation and the risks to price stability within Europ.
Finally those with an interest in GBP/AUD watch out for UK retail sales figures on Friday morning. This is forecast to show a slight improvement month on month from 0.3% to 0.4% and could lend support to sterling to end the week.
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