The Australian dollar has strengthened slightly on a more positive backing from the RBA, Reserve Bank of Australia. By not being too dovish or soft in their outlook, the Australian dollar has risen. The market is loosely expecting an interest rate hike in the future but this could now be as far ahead as 2020! Some had expected the RBA to be more negative last night, however they were quite positive about the Australian economy.
This has seen the Aussie dollar rise against all currencies, notably the pound and even the US dollar. GBPAUD has been driven into the 1.74’s whilst AUDUSD has risen to 0.7430. Expectations for the Australian dollar centre around the progress of their economy, Governor Lowe will give a speech later this week which could see further news to move the Australian dollar.
Last night’s interest rate decision moved the market as it was more positive than many had expected. It is now believed that in the future the global trade wars which have been raised as a concern which might negatively impact the Australian dollar, may not been such bad news. Tracking the data from China and the commentary from the RBA shows that perhaps this issue will not be as detrimental for the Australian dollar as believed.
Whilst stating they were not overly concerned at the moment from the slowdown in China, this was highlighted as a potential issue for the future and this could well be something that weakens the Australian dollar in the future.
If you need to buy or sell Australian dollars getting the best information is key to being able to track the upcoming news which might move the markets. For more information on the latest trends and themes which will influence the value of your exchange, please speak to me Jonathan by emailing [email protected]