Australian Dollar strengthens after Italian Prime Minster resigns

The Australian Dollar has been down this past week reaching lows of 0.63 to the British pound and 1.013 to the US dollar. The decline in the Aussie has been limited due to the resignation ofItaly’s Prime Minister Silvio Berluscoli. He will end his term as soon as the European Parliament approves their austerity plans. This served to restore hope that stability will resume in the Euro zone and that the Debt Crisis will not worsen. Khoon Goh head of market economics and strategy at ANZ National Bank was cited as saying that while the Aussie had seen a bit of a lift after the Italian prime minister’s resignation, markets were still cautious over the employment report.

The Aussie surged towards the end of the week along with many risk sensitive currencies around the globe, this has been driven by the improving stability in Europe due to the appointment of Mario Monti asItaly’s premier-designate. Mario Monti is the former European Union completion commissioner.

Japans domestic product data has been released this week, it is the first time since the earthquake and tsunami on the 11th March 2011 that this data has been seen to have risen. As one ofAustralia’s largest trading partners this has had a substantial effect on driving the Aussie.

GBP/AUD:       1.5621
EUR/AUD:      1.3357
AUD/USD:      1.0292
AUD/JPY:       79.3621
Exchange Rates at 09:55, 14 November 2011

Composed by Monique Chapman
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