Since Donald Trump was elected as President of the United States of America the Australian dollar has lost ground against the US dollar and Sterling.
The market is pricing in that Trump plans to boost government spending which in turn would cause inflation to rise and therefore interest hikes are likely. Chairlady of the Federal Reserve Janet Yellen has already hinted to an interest hike in December, 12 months since the last hike.
In other news the impact of China’s last round of monetary stimulus has began to wear off and this is pressuring commodity currencies including the Australian dollar. Rio Tinto, Australia’s biggest producer of Iron Ore has already stated they are likely to make 500 people redundant due to the slowdown in China. Personally I believe the Australian dollar has had a sustained period of strength and this could be coming to an end.
Key economic data releases to look out for when trading Australian dollars for the remainder of the week are:
- US Durable goods orders Wednesday at 1.30pm
- EIA Crude Oil Stocks change Wednesday at 3.30pm
- FOMC minutes Wednesday at 3.30
If you are buying ore selling Australian dollars in the near future feel free to email me on [email protected] (Dayle Littlejohn) with the reason for the transfer and your timescales. I will personally respond with a strategy outlining your options. Furthermore we can discuss the economic data that will impact your transfer and together devise a strategy which works for you.
The type of clients I deal with on a day to day basis are high net individuals, property buyers/ sellers and business owners. In addition if you are already using a brokerage feel free to email me and we can compare exchange rates to make sure you are receiving the best rates possible [email protected].
I look forward to assisting you with your currency transfer!