THE Australian dollar saw late week strengthening from Thursday morning, to end the week at 1.6984 against the British Pound and 1.0591 against the US Dollar. The start of the week however was far gloomier for the Aussie, trading at 1.7354 against the Pound and 1.0746 against the Greenback. With prevailing uncertainty in the US economy, the Aussie opened the new trading week at 1.7071 against the pound and 1.0644 against the Greenback.
With the US government entering its second week of partial shutdown, and the US congress debating the US government debt ceiling limit, the market will continue to experience high volatility due to uncertainty about future economic outlooks for the world’s largest economy. The market uncertainty includes failure to meet financial commitments, future economic outlook and availability of accurate economic data used by investors.
Thursday will see the release of Australian unemployment figures which is likely to have a huge impact in the market. This is set to happen early in the Australian trading day and will filter into the opening prices in the European market.
Late morning on Thursday will see the Bank of England interest rate decision announced. Coupled with the announcement is the Monetary Policy statement which generally reveals the future direction of the rate which affects the decision making of investors.
By Elizabeth Britz of 1st Contact
Exchange rates at 09:28 GMT, 7 October 2013
GBP / AUD: 1.7095
EUR / AUD : 1.4455
USD / AUD : 0.9395
NZD/ AUD : 0.8811
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.