The Australian Dollar was firm this week with the release of favourable US housing and jobless claims data. This news eased investors’  fears of a second coming in the looming recession. With investor confidence high, faith was restored in the Aussie Dollar trading at a rate of 1.69 to the British pound late Thursday afternoon.

Further aiding to the Aussies strength against the British Pound was the International Monetary Funds (IMF) announcement that they had concerns regarding the United Kingdoms future debt situation. They stated that the UK debt to GBP ratio could rise to 90.6 percent in 2015.

With reinstated investor confidence the Aussie is back on a strengthening path. Because the Aussie is a carry trade currency, when investor sentiment is high and they have a high tolerance to risk there will be strong buying pressure on the Australian currency thus causing it to stand firmer against all major currencies.

John Kiriakopoulos,the head of foreign exchange strategy in Sydneyat National Australian Bank Ltd, said “all eyes will on tonight’s US payroll report, which serves as a bellwether in the health of the economy and usually produces a fair degree of currency volatility”.

Expectations regarding the Australian reserve banks decision regarding the interest rate have been revised. Most economists are now expecting that the Reserve bank will hold rates steady at 4.5 percent on 7 September 2010.

The week ahead isloaded with uncertainty and speculation about where the currency is heading. If the current trend continues we should see further dollar strength continuing into next week.

AUD/ GBP:              0.593

AUD / EUR               0.711

AUD / USD:             0.917

AUD / JPY:              77.379

Exchange rates as of 09:48, 06September 2010

Composed by Paul Gerber

:: Note: The above exchange rates are based on"interbank" rates.
If you want to transfer money to Australia then please register/loginor call us for a live dealing rate.

Make use of a Rate Notifier to send you alert when the Australian exchange rate reaches levels you are looking for.

The AUD started this week around the 0.8876 mark against the US dollar. Minor inter week losses were recovered by Friday the 27^th August 2010 where it ended at 0.8874 to the green back. In the same period the Aussie opened at 0.572208 and finished slightly stronger at 0.5710 against the British Pound.

For the first time in 70 years, Australia’s federal election has not managed to deliver a majority government. This has caused negative investor sentiment due to uncertainty in the political outlook.

The outlook for theAussie up to this point has been rather positive with strong fundamentals, rising interest rates and a lower than expected fiscal deficit.

However, all that seems irrelevant at the moment as traders are more concerned about the election results than the positive fundamentals that have been occurring over the last period. Phil Burke, the chief FOREX dealer at JP Morgan in Sydney, said that he expected the AUD to“stay heavy”. Markets are detoured by uncertainty and thus the currency is rapidly loosing its status as a “safe haven” investment.

The Australian Reserve Bank also released further encouraging economical data stating that thecountry has now entered its 20^th consecutive year of positive economic growth. No other developed country has been able to match this performance during this same time period.

On the whole thecurrency outlook is unfavourable but with strong fundamentals and positive growth there is still a light at the end of the tunnel.

AUD/ GBP:              0.571
AUD / EUR               0.698
AUD / USD:             0.886
AUD / JPY:              75.05

Exchange rates as of 11.17, 27August 2010

Make use of a Rate Notifier to send you alert when the Australianexchange rate reaches levels you are looking for. 

Composed by Paul Gerber

:: Note: The above exchange rates are based on"interbank" rates.
If you want to transfer money to Australia, then please register/loginor call us for a live dealing rate.