THE Australian Dollar’s positive run over the past few weeks has seen it crawl back from dismal winter figures. After numerous yearly lows and even lower business confidence the Aussie has now set the stage for an emphatic comeback.
Last week opened with the Aussie firm in its position after business confidence surged 4.7% thanks to recent election confidence that assisted the Australian currency in reaching six week highs against the US Dollar. The markets were set up for a strong week ahead of crucial Australian employment data figures that saw analysts in favour of a positive outcome and employment figures set to strengthen. This however was not the case as unemployment figures rose by 0.1% and spoilt the positive run seen earlier in the week.
The Aussie remained flat going into the weekend before opening Monday morning hitting fresh 3 month highs against the Greenback, restoring some much needed confidence.
The US Dollar weakened after news emerged that Lawrence Summer withdrew his candidacy from the race to become the next Chairman of the US Federal Reserve. This now sees the current vice president, Janet Yellen, as a clear front runner for the seat. The news was met with mixed reactions, as US currency markets weakened, possibly due to the candidate’s cautious views on the Fed’s monthly bond-buying program.
The Reserve Bank of Australia (RBA) has a busy week ahead as they are due to release minutes of their most recent interest rate decision: The RBA Bulletin, RBA Foreign Exchange Transaction and The RBA Annual Report. We can expect to see most of the Aussie’s movement this week to be steered by these data releases.
By Anton van Teylingen of 1st Contact Forex
Exchange rates at GMT 08:30GMT, 16 September 2013
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