Aussie Dollar Weakens after US Jobs Data

The fall in COVID cases throughout Oz has led to AUDGBP, AUDUSD and AUDEUR rate increasing throughout yesterday’s trading.
Tom Holian

The US has announced their best levels of unemployment since October 2008 at 6.6% which is one of the best figures in the world at the moment. This had led global investors to sell off the Aussie Dollar as it means they are less likely to have funds in riskier currencies including the Australian Dollar.

Following the RBA statement earlier this week and the announcement that their current interest rate cutting cycle has now come to an end this has strengthened the Australian Dollar by 3% and a drop from its 4 year low against the Pound. Personally I think the announcement will only affect the exchange rate in the short term before we see further weakening for the Aussie Dollar.

The problems for the Australian economy have not suddenly disappeared overnight. The Chinese economy has experienced a huge slowdown during 2013 and the 8 interest rate cuts since 2011 have also weakened the Aussie Dollar. The mining industry is struggling compared to previous years and all this is negative for the Australian economy going forward and therefore my personal opinion is that this will be reflected in the GBPAUD exchange rate going forward.

On Tuesday morning there is a lot of housing data down under which will provide us with some visibility as to confidence levels and how the property market is performing. The Wetspac consumer confidence is also released which i expect to be lower than expectation.

If you have a currency transfer to make and want to save money compared to using a bank then contact me directly Tom Holian teh@currencies.co.uk