Dollar Review – Aussie all shook up by majors

The Aussie closed substantially weaker on Friday the 21st of October 2011 at 1.544 to the British Pound and 1.023 to the US Dollar.

The Aussie is expected to continue strengthening against major players such as theUnited StatesandEuropeas the two power houses focus on stabilizing their banking systems which have been under immense pressure of late.

There has been a call from many Investment strategists for a lower Aussie dollar in order to maintain a competitive edge in the global markets.

Michael Power of Investec Asset Management stated that the “stabilizing programs” that have been initiated in the USA and Europe could have an adverse effect on the economy. It has been suggested that this increase in government spending could result in a multiplier effect on inflation. As more money is injected into the economy we will see an increase in spending which will drive prices upwards and thus just shifting the problem to a different sector of the economy.

A second summit consisting of the European Unions leaders will be held this week in order to conclude a final decision that will hopefully ensure that Italy and Spaindon’t fall further into this debt trap that is threatening many countries within the EU.

“I don’t think Greece will survive, I doubt Portugal will, Ireland is working very hard to try and survive, but it’s still difficult.” said Dr Power

GBP/AUD:      1.532
EUR/AUD:     1.334
AUD/USD:     1.041
AUD/JPY:       79.33

Exchange Rates at 07:52, 24 October 2011

Composed by Paul Gerber
:: Note: The above exchange rates are based on “interbank” rates. If you want to transfer money to or fromAustraliathen please register/login on our website, www.1stcontactforex.com, or 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.