The Australian dollar does not just react to developments on the Australian economy. It also reacts to global events that impact financial markets such as the news later today from the European Central Bank. Expectations are for the ECB to look at some form of QE which would weaken the Euro and make the Aussie stronger. Australia offers a much higher interest rate for investors than what is on offer elsewhere in the world and this means if investors are confident they would rather put money into a currency with a higher interest rate.
The recent surge in commodity prices for the Australian economy has removed the immediate need for any interest rate cuts down under and should help keep the Aussie dollar stronger. If you have any Aussies to buy or sell today could be a very important day so making plans in advance could be worthwhile.
For more information at no cost or obligation please speak to me Jonathan by emailing [email protected]