The European Central Bank have announced this afternoon that they have cut the deposit interest rate to 0% and also increased QE by an additional €20bn.
This has caused all the commodity based currencies to weaken during this afternoon’s trading session including the Australian Dollar, New Zealand Dollar and the South African Rand.
Indeed, GBPAUD rates have moved by as much as 4 cents from the low to high.
ECB president Mario Draghi has also cut the growth forecasts for the Eurozone and this has led to a huge loss in investor confidence and global risk appetite causing such volatility on the currency markets.
With Chinese Retail Sales due to be released on Saturday morning as well as Industrial Production data this could also negatively effect the Australian Dollar.
As China is Australia’s largest trading partner any negative news often causes weakness for the AUD.
China has also had its outlook downgraded to negative by credit ratings agency Moody’s and could this be a sign of things to come for China?
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]