By Elizabeth Britz
LAST week saw the Australian dollar claim back lost ground as it rallied against the British pound and Euro. The Aussie Greenback battle was highly volatile last week due to uncertainty creeping into the market around US debt ceiling policy reviews. Monday saw the same trends continuing from last week with the Aussie trading at 1.6891 to the pound and 1.0577 to the US dollar.
Monday saw the release of Australian home loans data with the first drop in home loan approvals for 2013. A short weakening trend was seen this morning against most of the Aussie counterparts until the release of Chinese inflation data. The Chinese Consumer Price Index was higher than expected at 3.1% which helped to boost the SHCOMP (Shanghai Stock Exchange Composite Index) by 0.6 percent. Low trading levels are expected today due to the banking holiday in the US.
The US debt repayment deadline has finally arrived this week and will see a decline in volatility once a decision is made by the US Senators. Talks are set to reconvene later today with voting to take place at 6:30pm in Washington.
Friday will see the release of Chinese economic data early in the Asian trading session. Economists expect a small increase in GBP growth, industrial production and retail sales. China is Australia’s biggest trading partner and positive news out of China will help boost the Aussie.
Exchange rates as of 08:18 GMT, 14 October 2013
GBP / AUD: 1.6892
EUR / AUD : 1.4338
USD / AUD : 1.0577
NZD / AUD : 0.8823
Note: The above exchange rates are based on “interbank” rates. If you want to transfer money to or from Australia then please register/login on our website, www.1stcontactforex.com, or call us on 0808 141 2335 for a live dealing rate. Make use of our Rate Notifier to send you alert when the Australian Dollar exchange rate reaches levels you are looking for.