Australian Dollar exchange rates hinge on unemployment figures due out on Thursday – Will we see Australian Dollar strength? (Daniel Wright)

AUD GBP Seeks Support from Australian Employment Data

Australian unemployment figures are due to come out on Thursday and expectations are that we may see the continuing trend of a fairly robust economy with the unemployment figure predicted to be at 5.8%.

Should this come out as expected or even slightly better then we may see the Australian Dollar make some further gains against most majors but any rise in unemployment may knock Australian Dollar exchange rates back a little.

The Australian economy has had a few knocks over the past few years but still seems to be hanging on in there, and earlier predictions of large Chinese problems appear to have been swept under the carpet for the time being.

I am still of the opinion that the Australian Dollar will have a period where it does have a tough time, however the issue is that as it stands it is seen as one of the best of a bad bunch, with interest rates still fairly favourable we may not see that change too imminently.

One larger factor that may be a trigger for a drop off could be further rate hikes in the U.S, should we see the interest rate in the States start to catch up the interest rate in Australia then you may see a large unwinding of carry trades, as investors would rather have their funds sat in USD than AUD due to its perceived safer nature.

Carry trading is where an investor borrows money in a low interest rate and shifts it to a currency with a higher interest rate, making a return on the difference.

If you are looking to buy or sell Australian Dollars against any major currency in the near future and you want to maximise your rate of exchange then it is well worth you getting in contact with us here personally. You can email me (Daniel Wright) on [email protected] with a brief description of what you are looking to do and I will be more than happy to contact you personally.