The Aussie Dollar is trading at some of the strongest levels for a number of months against a basket of currencies, following the US Fed Minutes last night, and better Australian unemployment figures in the early hours of this morning. The Fed were once again very cautious on the pace of tapering their QE program which suggests the supply of cheap investment is not going to be fully switched off any time soon. This is good news for the Aussie as speculators had worried that if the US were to increase the pace of tapering, then the Aussie (one of the beneficiaries of this cheap money supply) could fall further and was being sold off as a result.
The Aussie jobs news showed the rate of unemployment dropped from 6% to 5.8% and further reinforced the view that the Australian economy is still doing very well. The announcement was a surprise given how strong it was, and does change sentiment around the Aussie, suggesting that it will now settle near these stronger levels or possibly make slight gains if news continues to impress. The pound should get some stability over the fact the UK’s own economic news has still be looking reasonably good, so dont expect huge movements but be prepared to move should any profit taking set it.
Anyone with an AUD EUR exchange may want to keep a close eye on German CPI data out tomorrow afternoon as this could be an early warning of Euro weakness.
If you have a currency transfer to make and would like to take advantage of the exchange rates we offer, then feel free to email Colm at [email protected] and I would be happy to explain how our services work.