The Aussie Dollar has once again gained ground against the Euro, Dollar and even sterling following Glenn Stevens comments the other evening. Whilst I expected the Aussie to move up versus the Euro I have been surprised it managed to break significantly below the 1.80 barrier with the pound, although it has retraced some gains against sterling with the excellent retail figures in the UK (and the fact the pound has probably been a touch undervalued in the last week as speculators sold off positions).
We still have German inflation data in just over an hour, and wider EU figures on Monday, and if these are low then we could see the single currency slump even further against a resurgent Aussie as markets price in the ECB’s hand being forced possibly as soon as next week’s rate meeting. If you are transferring Aussie Dollar to Euro then this release could be pretty key so keep a close eye.
With regards to sterling, I think the pound could claw some ground back but realistically I expect it to bounce around the 1.80 mark with the markets already pricing in positive news for the Aussie this week which may make next week’s RBA decision a little less important if we already have an idea of what the RBA are thinking. However if other Board members aren’t as optimistic we may see the pound creep back up over 1.80 pretty sharpish.
If you have a currency transfer to make, then please feel free to contact Colm at [email protected] or call me on 01494 787 478 and I would be happy to help you get the best exchange rate on Australian Dollars.