The Australian Dollar climbed due to the release of April’s positive home loan approvals, which rose by 1%, defeating expectations of a 2% decline. This data was reinforced by the highest business confidence figures in almost a year. These confidence figures were attributed to a well received May-budget and the latest interest rate cut.
But once again, this was not enough to establish the Dollar firmly above 2.0. This strong national data was offset by weak Chinese inflation numbers, which showed consumer prices rose by just 1.2%, emphasising poor demand in the long-term for Australia’s exports.
Repeatedly the Dollar has hit 2.0 and quickly moved beneath the mark. With slowing growth in China, and an economy on the road to recovery from low commodity prices, it seems this stalemate could be prolonged. Those looking for the rates to move further in the favour of purchasing AUD may be disappointed. I would be inclined to book my currency ahead of time to secure these rates. Call me today on 01494 787 478 for a free quote. [email protected]