The Australian dollar experienced a 33 month low against the US dollar last week. The effects of negative investor sentiment along with volatility in Japanese volatility disrupted the possibility of a comeback.
The British pound broke through 1.66 Aussie dollars midweek, a level not seen since 2010. By this week’s opening the pound had settle back under 1.64.
The pessimistic view on the currency is due to three main reasons; namely weakening commodity prices, the slowdown of Chinese growth and the strengthening US dollar. All these factors have prevailed over recent months to see the Aussie hit numerous lows against counter parties and become one of the worst performing currencies in the world for 2013.
Despite all this, there is a glimmer of light. Analyst noted that the weakened Aussie could see stocks pick up with an increase in foreign direct investment. Growing exports were warmly welcomed by the agricultural sector which saw a substantial increase in reported revenue.
Looking to the week ahead, all eyes will be on Chinese manufacturing PMI data scheduled to be released on Thursday. This will be the focus point for the Aussie’s performance as the data provides valuable insight into China’s slowing growth figures.
Composed by Anton van Teylingen
Exchange rates at 09:30GMT, 17 June 2013
EUR/AUD : 1.3881
USD/AUD : 1.0404
NZD/AUD : 0.841
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.