THE Australian dollar ended September weaker than anticipated as hopes of a comeback were short lived thanks to positive news out of the UK. Speculation about future RBA interest rate decision matching has left the Aussie in a vulnerable space with investors confused about where the Aussie will find a stable trading band.
Many analysts expected the RBA will keep the interest rate constant at its 2.5% when they meet this week (Tuesday) even though they are still under the opinion that the Aussie is overvalued and believe that it still has a long way to fall before reaching fair value.
Most of the international trading market will be focused on the fallout of US budget negotiations in Washington this week. Failure to reach an agreement could force parts of the US government to be shut down and will have severe impacts on the US and so the global economy.
Looking ahead, an enormous amount of data is set to be released this week that would drive most of the Aussies price movement. Notable announcements include the RBA interest rate decision and statement, the European Central Bank monetary policy statement and the Chinese Price Manufacturing index. Australia has been assisted by optimistic Chinese data recently and will be relying on a continued positive data trend to boost the future economic outlook between these trading partners.
Composed by Anton van Teylingen
Exchange rates at 9:30GMT, 30 Sept 2013
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.