Australian Dollar losing ground against most major currencies (Daniel Wright)

AUD GBP Weak Ahead of Trade and Retail Data

We have seen the Australian Dollar lose ground against most major currencies this week and this trend may well continue as the week progresses.

With Donald Trump bringing in new tariff’s for Canada on trade this has led to concerns that we may see a similar situation for many other economies which could really put further pressure on the Australian Dollar as it would initially be seen as a negative for the Australian economy.

We had slightly weaker than expected inflation data for Australia earlier in the week, and we have more to be released tomorrow and although markets are expecting a small improvement, I would be surprised to see any large gains for the Australian Dollar this week as I feel the trend is well and truly against it at present.

Tomorrow we also have GDP (Gross Domestic Product) figures over in the U.S and this can have an impact on all major currencies as it has an affect on global attitude to risk. GDP is essentially how much the economy grew or shrank during a specific period and the reason the U.S figure is so key for the Australian Dollar is due to the fact that it will be key for their decision on their next interest rate change, and should the U.S hike interest rates again I would expect to see the Australian Dollar weaken further.

If you put yourself in the position of a large investor, you would more than likely prefer to hold funds in the less risky USD rather than the more volatile AUD and interest rates for the two are getting closer, the closer they get the larger the flow out of AUD and into USD, hence making the AUD weaker over time.

If you have the need to buy or sell Australian Dollars for emigration, property or business requirements and you would like my assistance then feel free to get in touch with me (Daniel Wright) directly on [email protected] .I regularly have clients contact me who find that not only can they save money and get a better rate than their current provider but also that our service is exceedingly smooth too.