THE Australian Dollar held its ground last week, trading at 1.5357 to the British Pound on Monday and around 0.9667 against the US Dollar. By Friday the Aussie closed around 1.5347 GBP and 0.9632 USD, as the trades look optimistically towards the Greek funding solutions. Friday also saw positive economic data out of Germany with the IFO data being released beyond expectations.
This week, China is due to release its industrial profits on Tuesday and its official manufacturing PMI on Friday. This is likely to be positive news for the Aussie if last month’s trend continues with a PMI reading over 50 index points.
Investors are currently speculating a rate cut by the Reserve Bank of Australia. The market has not fully priced in the rate cut yet but as 4 December RBA decision draws near this will become the Australian Dollar’s focus point.
Thursday will see the Australian capital spending plans released. The market fears there will be a sharp decline in spending as companies scale back in their expansion. If this should occur, the risk of higher future unemployment will play heavily on the Aussie.
By Elizabeth Britz on behalf of 1st Contact
Exchange rates as of 08:54, 26 November 2012
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