This week has been a mixed one for the Australian Dollar so far, with a fairly week start and a flatter past 24 hours.
The reason the Australian Dollar lost strength earlier in the week was due to news of slower wage growth than expected.
Wage growth yesterday came out at 0.5% against analyst’s expectations of 0.7% which is the reason why we saw Australian Dollar weakness.
Wage growth is a really important release in the current climate, if wage growth ( the increase in how much people are earning) is a lot lower than inflation (the increase in the costs of goods and services) then you can generally expect an economy to drop off a little, as people will have less money in their pocket to spend. Bad economic data can then in turn lead to weakness for a currency, and with markets moving well in advance of an event actually happening this is why we are seeing a good opportunity to buy Australian Dollars at present.
Unemployment figures came out today and despite the fact that they actually showed an improvement, the Australian Dollar failed to make any vast improvements against most major currencies.
The rest of the week is fairly quiet but do not be fooled into thinking that the Australian Dollar will remain flat, being perceived as one of the ‘riskier’ currencies there is always the chance of movement should global attitude to risk alter.
Should you be in the position that you need to buy or sell a large amount of Australian Dollars and you would like my help along with a better exchange rate than your bank or current broker then I would love to hear from you. You can email me (Daniel Wright) personally on [email protected] with a brief description of what you would like to do and I will be more than happy to get in touch with you to explain how I can assist.