With RBA Deputy Governor Lowe due to speak in a few hours there could still be some volatility in store for the Aussie but it has been a strong day trading for the currency Down Under. The Aussie is beginning to put pressure on the 1.80 barrier for the pound but UK inflation figures could cause a rebound tomorrow morning at 9.30 if inflation is high. However the Euro has struggled today following weaker than expected PMI data and I still think there is worse in store for the single currency – with German inflation due at the end of the week, and wider European figures a week today, I think they could trigger Euro weakness if the figures are on the low side. Obviously that is a long time to wait given how much currency markets can move and we do have some significant US data releases in between, but I do think it could be a great opportunity in the short term.
For USD buyers then Durable Goods on Wednesday is likely to be the most significant data release of the week so definitely one to watch. rates are currently around the 0.91 mark but there could be a little more upside for the Aussie in the short term. On the Euro I am targeting sub 1.51 and then possibly a break even lower, but I suspect the Aussie will struggle to break 1.80 on the pound imminently if UK inflation is ok. If you need a currency transfer and would like some assistance to get the best exchange rate, then feel free to contact Colm at email@example.com or call me on 01494 787 478