Tomorrow we have the release of Australian unemployment figures and expectations are for the unemployment figures to have dropped off a little from 5% to 5.1% for October. This would be in stark contract to the latest release in New Zealand where the release came out at 3.9% recently, the best unemployment figures seen there since 2008.
Should the figure have risen a little as analysts are expecting then we may see a little weakness for the Australian Dollar in early trading on Wednesday, but in my own opinion I feel that political issues around the world are still the most important factor for the Australian Dollar against most major currencies.
First and foremost we have Donald Trump and his trade wars with China, one moment it looks like Trump is willing to compromise and broker a deal with his Chinese counterpart and then in the next breath he seems to go back into attack mode, aiming to lower tariffs for the U.S and to heap lots of them on China. With China being a major importer of Australian goods and services and a large volume of tourist dollars spent in Australia any move from Trump that is seen as negative for China tends to weaken the Australian Dollar and any positive vibes that come from the talks can give the Australian Dollar strength.
For anyone that has an interest in Sterling against the Australian Dollar, buying or selling then the next 36 hours are key. A Brexit deal appears to be edging ever closer however both sides are ‘cautiously optimistic’ which suggests that although a deal could be initially agreed by chief EU negotiator Michel Barnier’s latest deadline of tomorrow evening, if that does happen then GBP/AUD should surge through the 1.80 level however should talks fall through then we may be looking at trading closer to 1.76.
If you are in the position that you need to exchange Australian Dollars into or out of any major currency and you would appreciate my assistance then I would be more than happy to help you. Not only could I act as your eyes and ears on the market but we pride ourselves on getting the very top rates of exchange too. You can contact me (Daniel Wright) for a no obligation chat about your current position and I will get in touch with you personally. Feel free to email me on [email protected] or call the trading floor on 0044 1494 725 353 and ask to be put through to Daniel Wright, quoting Australian Dollar Forecast.