The Australian dollar is weaker this week, following the news that Australian employment data, whilst reasonably positive, was not inspiring enough to majorly turn the tide on the Australian currency. With the outlook on interest rates shifting following very poor GDP (Gross Domestic Product), which recently came in at a decade low, the Reserve Bank of Australia might well be looking to cut their interest rates once again ahead.
I am concerned about some of the more global issues that will influence the Australian dollar too, the prospect of the trade wars deteriorating ahead could be a major concern for the currency. It is likely that the Australian dollar will suffer as investors are fearful over the slowdown in the Chinese economy, this weekend’s G20 Summit will be key in determining what happens next.
If you are looking to buy or sell the Australian dollar, making some careful plans in advance is usually a good idea to try and help mitigate the uncertainty. As a commodity currency, the Australian dollar will often rise and fall on the waning attitudes to global risk and trade. Donald Trump is a real wildcard here and his constant to and fro on the trade wars, is harming sentiment.
Next week, is a series of important economic releases with the Governor of the RBA, looking to make a speech plus the latest RBA Meeting Minutes. In providing information on what lies ahead, we will learn of the latest news and developments we might expect. I predict that Lowe will have to keep the door open to further cuts and this could see the Aussie weaker.
Looking at the general trend and trajectory on the trade wars, I think the Australian dollar could lose more ground ahead. Expectations are mixed over what to expect this weekend, any signs of agreement between Trump and China, could provide some shorter-term relief for the Aussie. However, I do feel that any improvement in sentiment will only be short-term, and there will continue to be a longer net negative concern from the trade wars which will affect the Australian dollar.
Thank you for reading my post and should you have a Australian currency transfers that you wish for assistance with, I would be most interested to hear from you and discuss strategy to assist with the best rates and timings.