The Australian Dollar lost a little ground in trading yesterday following poor construction data and concerns from the RBA over Chinese debt and the two together led to a drop in demand for AUD and a slight drop in value to go with it.
Construction work was 18% down on figures over the same period last year and only rose 0.2% for the quarter compared to expectations of 1.3% which is quite a big miss.
RBA Governor Philip Lowe remained firm that the RBA would not be in any rush to make adjustments to monetary policy anytime soon and he also commented that a clear build up of debt and bad loans in China is also a considerable risk to the Australian economy. He cited that there have been similar situations in the past that have led to economic slowdown or a full blown financial crisis.
China at present is a large importer of Australian food and service and Chinese tourists currently account for 25% of all tourist Dollars spent in Australian currently, not to mention China being a large importer of Australian iron ore and coal.
This news unnerved investors who are already getting mixed news regarding Donald Trump and trade tariffs and are already looking to come out of the Australian Dollar due to stagnant interest rates where other seemingly more stable economies around the world (for example the United States) are making their moves and raising interest rates, even now to a point where the USD is a more attractive currency than the AUD as it offers a better return for investors money.
If you are in the position that you need to carry out a currency exchange involving Australian Dollars and you would like to be kept up to speed with any rate changes then you are more than welcome to get in touch with me and I will be happy to help you personally. The brokerage I work for has been operating for 18 years now and we pride ourselves on getting clients not only the best exchange rates on the market but also offering the very highest level of customer service too.
If you would like to discuss a specific scenario or exchange with me then feel free to email me (Daniel Wright) on [email protected] and I will be more than happy to get in touch personally.