THE Australian Dollar nearly hit a five-week high last week on the back of strong local data before losing most of its gains by week end. The Aussie opened on Monday 11 May at 1.459 against the British Pound. It managed to touch a high for the week of 1.439 on Tuesday before closing at 1.452 on Friday.
A larger-than-expected growth in employment bolstered demand for the currency, with Richard Grace of Commonwealth Bank of Australia telling Bloomberg, “It’s a very strong employment number, and somewhat surprising given the challenges the Australian employment market is facing.” The figure is indicative of underlying economic strength in the country, he explained.
The Pound regained some of the strength it has lost in recent weeks as Bank of England Governor Mervyn King announced possible central bank asset purchases after the Eurozone policy makers put together a rescue package for Cyprus. The rescue package included a plan to raise EUR5.8 billion by taking a small amount from all Cyprian bank accounts, thereby driving investors to safer havens, and away from currencies such as the Aussie. “The concern is that this bailout plan was forced upon deposit holders, taxing them and therefore an involuntary support for the bailout,” Imre Speizer of Westpac Banking Corp told Bloomberg.
There is little local data expected out of Australia this week, other than the release of the minutes from last week’s policy meeting. Direction for the currency will most likely come from external factors, including further developments from the Cyprus situation.
Composed by Jesse Crooks of 1st Contact Money Transfers
Exchange rates as of 09:20 GMT, 18 March 2013
GBP/AUD: 1.457
EUR/AUD: 1.248
AUD/USD: 1.037
AUD/NZD: 1.257
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 ]
