OVER the past week US data was received which steered the Australian dollar in its eventual direction. Tuesday saw the release of US retail figures that assisted the Greenback in its rally and saw the Aussie take a midweek slump. Friday evening brought another round of US data releases, however this time results were lower than analysts expectations, with monthly industrial production reporting zero percent growth for the month of July.
Japan’s Economics minister, Akira Amari, confirmed that the Japanese Yen could see some recovery, in his statement mentioning that “the Japanese economy remains halfway through toward end of deflation”. Australia’s strong trading ties with Japan saw them ride the wake of this positive sentiment and strengthen further heading into the weekend.
The past week has seen offshore data assist the Aussie Dollar; however economists still believe that the currency is expected to weaken in the long run. Looking ahead, the RBA is due to meet on Tuesday morning to release minutes after the interest rate cut decision two weeks ago, this will provide more insight into the discussions about future decisions. Chinese manufacturing PMI data is also due for release early Thursday with analysts expecting positive figures to serve as an early indicator for further economic health.
Composed by Anton van Teylingen
Exchange rates as of GMT 10:30 19 August 2013
GBP/AUD : 1.698
EUR/AUD : 1.447
USD/AUD : 1.086
NZD/AUD : 0.885
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.