THE Australian Dollar looked poised to have a winning week when it opened at 1.514 against the British Pound last Monday, before strengthening to a high for the week of 1.501 on Tuesday.
The early week strength was attributed to an increase in the global appetite for risk on the back of a number of positive events worldwide, which enhanced the goodwill brought on by solid local data. Gains were felt against most of its 16 top trading peers as business confidence in the country experienced the biggest month-on-month increase since October 2001.
By Thursday, however, the week’s gains had been erased after Chinese manufacturing data disappointed investors.
Westpac’s Jonathan Cavenagh said of the Aussie, “Chinese manufacturing data was not a disastrous result but definitely weaker than what the market was looking for. It would certainly take the shine off of Aussie Dollar”.
The New Zealand Dollar, however, reached the highest it has been against the Aussie currency since August 2011 after the nation announced it would focus on reducing its budget deficit. This made the Kiwi more desirable to investors at a time when policy strategy is of utmost importance to them.
The Australian Dollar found some support though ahead of this week’s release of the country’s balance of trade numbers
Many economists predict the balance of payments to have shrunk considerably since November. This should also encourage the Reserve Bank to keep its cash rate unchanged.
By Jesse Crooks of 1st Contact Money Transfers
Exchange rates at 08:40 GMT, 4 February 2013
GBP/AUD: 1.507
EUR/AUD: 1.305
AUD/USD: 1.041
AUD/NZD: 1.231
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.
[ Source: Australian Times ]
