ECB Meeting Tomorrow Could Be Key For AUD’s Value Moving Forward

AUD to GBP Lower as Pound Recovery Continues

Today’s trading session has seen another strong day for the Australian Dollar, with the Aussie gaining on all other major currency pairs with the exception of the Canadian Dollar.

AUD has benefited a great deal from the mini-revival in commodity prices as of late, and with oil (crude) gaining another 1.5% so far today amongst other commodity gains, it would seem like the Aussie could have further to climb as the Austral-Asian market opens up and prices in today’s bullish day for commodities.

Towards the end of last year there had been speculation of an interest rate hike although given the boost to the Australian economy via improved commodity prices, that increase is now looking a lot less likely. The Aussie is currently trading around a 1 year high against the Pound, and unless we see a dramatic turn in commodity prices or monetary policy from the RBA, I cannot see a change in the direction of the AUD against both the Pound and US Dollar.

There’s little Australian specific economic data due this week, although I think the ECB’s Monetary Policy meeting tomorrow could affect the AUD’s value should we hear any announcements regarding further financial stimulus within the Euro-zone. I think further Quantitative Easing could benefit AUD as the currency has benefited a lot recently from financial stimulus from major banks, as investors’ appetite for riskier assets increases.

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