The Australian dollar is in for a very busy week with some key news to move the market including the latest Reserve Bank of Australia interest rate decision on Wednesday. The RBA has been gently leaning towards raising rates in the future but with this date seemingly well in the future, the Aussie has been weaker but has recently found some form. Overall, I expect the continued lack of action by the RBA versus the pursuit of higher rates from both the US central bank and also the UK, should see the Aussie losing ground once again in the future.
Whilst nothing is guaranteed on exchange rates, the potential for the Australian dollar to rise against its counterparts is I feel limited even with the prospect of the RBA raising interest rates much longer term. The appetite for the Aussie is centered around global attitudes to risk and trade, the recent Chinese trouble with America is weighing on the market at present. The Aussie acts as a barometer of developments with increased uncertainty leading to a weaker Aussie, improvements in the outlook on Trade Wars have seen the currency stronger.
Versus sterling there seems to be some real scope for the Aussie to lose ground, particularly since the UK looks set to raise interest rates much sooner than the RBA. Of course, there is no telling exactly what is around the corner on exchange rates, the vital UK data being released this week will be a key indicator on the price and could well move be one of the more important drivers on GBPAUD this week.
If you have a currency exchange involving the Australian dollar to buy or sell a foreign currency, understanding the market with as much key information can be very helpful. As well as offer a preferential rate of exchange we can also help guide you through the market and all of your options, if you wish to learn more please do contact me Jonathan Watson on [email protected]