By Candice Goodall
The Australian Dollar traded between 1.796 and 1.735 to the British Pound in the same time period. The Australian dollar continued to strengthen throughout the week, ranging from 1.734 to 1.781 to the British Pound.
The Australian Dollar exchange rate traded between 1.113 and 1.090 to the US Dollar during the 4 January 2010 and 8 January 2010 period.
The Australian dollar continued the trend of the final months of the last year, this week by showing a recovering economy and reinforced speculation of further interest rate hikes in the months ahead.
Retail sales soared to 1.4 per cent in November, well above October’s 0.4 per cent rise and beyond the expectations of most economists which could cause an increased chance of an interest rate hike when the Reserve Bank board meets next month.
The Australian Bureau of Statistics data confirmed that retail trade increased to A$20.081 billion.
Analysts predicted an increase of only around 0.3 or 0.4 per cent. The results of December’s performance will not be known until the next month and then becomes more crucial. According to ANZ economist, Alex Joiner, ‘the Australian economy is proving very resilient.’
According to economics strategist, Millan Mulraine, economic conditions was showing continuous improvement.
The speculation is that the Reserve Bank of Australia will increase the cash rate by a further 25 bps when they meet next month, but this still remains to be seen.
A business lobby group believes that the interest rates should be put on hold as the economy is still ‘fundamentally quite weak.’
The survey of 916 businesses found that expectations of business conditions, sales and profitability were at its highest levels ever since October 2007, however expectations for investment remained at contractionary levels.
Australian Chamber of Commerce and Industry director, Greg Evans agreed that a further increase would not be plausible.
The Reserve Bank of Australian would be watching the labour data, employment and the CPI statistics closely in the coming weeks.
Brought to you by 1st Contact Money Transfers
:: Note: The above exchange rates are based on "interbank" rates.
If you want to transfer money to Australia then please register/login or call us for a live dealing rate.
Make use of a Rate Notifier to send you alerts when the Australia exchange rate reaches levels you are looking for.