Potential Eurozone QE helps to strengthen the Australian Dollar (Tom Holian)

Australia Dollar Lower as Victoria Extends Lockdown

During the ECB press conference there have been big hints that the Eurozone may look at introducing further QE which has signaled Euro weakness and a strengthening of all the riskier commodity based currencies including the Australian Dollar.

The carry trading that has taken place means that investors borrow in a low yielding currency (in this case the Euro) and buy higher yielding currencies such as the Australian Dollar and this has helped to push GBPAUD rates in a downwards direction.

Chinese data overnight has also helped to strengthen the Australian Dollar and the Chinese house price index and economic activity has come out better than expected.

With little economic releases for either UK or Australia today I think the current trend of Australian Dollar will continue over the next few days.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]