THE Australian Dollar managed to regain some the ground it had lost over the past few weeks, ending the week just below the 1.55 mark.
Surprisingly, it was news from the Eurozone that helped bolster the currency – the prime contributor being credit agency Moody’s decision to keep Spain’s credit rating unchanged.
The unexpected good news increased risk appetite, resulting in an increase in demand for the Aussie. Talk of a Spanish bailout application from the European Stability Mechanism (ESM) was also received favourably by investors.
By Thursday the markets were looking toward the release of Chinese growth data, with the expectation of some strength in the nation’s GDP figures. Chris Weston of IG Markets summed pre-announcement sentiment citing China’s Premier Wen’s suggestion in a speech that “the numbers are going to be okay”.
The actual figures showed on-target GDP growth of 7.4% year-on-year, with an increase in industrial production. The positive data from Australia’s largest trading partner offered support to the Aussie.
The outcome of a summit held in Brussels by a European Council on Friday though was underwhelming, with no groundbreaking decisions being announced. Chris Tedder, research analyst at Forex.com said, “The rhetoric that came out of the EU summit is not what the market was looking for, nothing new was announced.” The result was a slight depreciation in the Aussie from its week high-point.
For the week ahead, investors will be looking toward the release of Australian inflation data for the previous quarter on Wednesday.
GBP / AUD: 1.554
EUR / AUD: 1.264
AUD / USD: 1.030
AUD / NZD: 1.261
Exchange rates as of 9:00, 22 October 2012
Composed by Jesse Crooks of 1st Contact Money Transfers
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.