The Australian Dollar has had a mixed week, the RBA meeting minutes from the last RBA interest rate decision suggested that we still cannot see any movement for interest rates in sight and both Chinese growth figures and Australian unemployment were fairly solid.
We have not seen a huge amount of volatility for the Australian Dollar off the back of these data sets, and all eyes now will look towards Australian inflation figures which are due out on Tuesday.
Inflation is expected to have got a little higher in Tuesday’s figures and this may lead to a little improvement for the Australian Dollar early in the week, in my opinion though any improvements in the Australian Dollar may be short lived, I still feel that we are set for a period of weakness for Australian Dollar exchange rates.
As I have mentioned in previous posts there are various reasons for this, inclusive of interest rates rising in other economies around the world, Australian economic data not being great, falling commodity prices and global risk sentiment dropping due to political issues and trade wars. The Australian Dollar is classed as a riskier currency so when global tensions are high you tend to see the Australian Dollar lose ground against most major currencies.
Interest rates are vital to the performance of a currency too as a higher interest rate will make a currency more attractive to investors, with areas such as the U.S now raising rates to a level above Australian interest rates we are seeing qwuite a flow of money out of the Australian Dollar and into the U.S Dollar, making the Australian Dollar weaker and cheaper to buy.
If you have the need to exchange Australian Dollars in the near future and you would like my assistance with achieving the best rate and the timing of it all too then you are moire than welcome to contact me directly and I would be more than happy to help you personally. You can email me (Daniel Wright) on [email protected] and i will be more than happy to contact you to discuss the options available to you.