THE Australian Dollar began trading last week Monday the 12 November 2012 at around 0.6535 British Pounds and 1.0395 US Dollars.
The Aussie then weakened throughout the week to close at GBP 0.6504 and USD 1.0313 on Friday. The currency reached a three-week low after risk appetite decreased among speculation of a worldwide economic slowdown.
Concerns about Eurozone risks, in conjunction with the escalating conflict over the Gaza Strip, has resulted in decreasing stocks which catalysed global risk aversion.
The Eurozone has succumbed to the reality that it is in fact in a recession for the second time in four years. “There was plenty of bearish news to depress markets,” Sean Callow, a senior currency strategist in Sydney at Westpac Banking Corporation stated.
Looking ahead, the Australian Dollar is expected to gain against the Yen on speculation of the Japanese elections next month will result in an opposition party that advocates increased monetary stimulus.
Trading this week opened with signs of strengthening in the Aussie, largely due to deficit reduction talks in the US lifting market sentiment. Investors will be keeping a keen eye on any information coming from the ‘open talks’, regarding tax hikes and spending cuts, expected in the US over the upcoming weeks.
The key local event to look out for this week is the release of the RBA’s November board meeting and speech by RBA’s Governor Glenn Stevens.
Composed by Saskia Johnston of 1st Contact Money Transfers
Exchange rates at 09:00 on 19 November 2012
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.