The Australian Dollar has put on a fairly mixed performance for much of the week. In addition to being devalued by falling metal prices, the ‘Aussie’s appeal has also been damaged by unstable inflation rate stats for the previous quarter.
This Week’s Australian Dollar Exchange Rates:
Pound Sterling to Australian Dollar (GBP/AUD) –
Week’s High: 1.7629
Week’s Low: 1.7383
US Dollar to Australian Dollar (USD/AUD) –
Week’s High: 1.3410
Week’s Low: 1.3266
Euro to Australian Dollar (EUR/AUD) –
Week’s High: 1.4722
Week’s Low: 1.4589
New Zealand Dollar to Australian Dollar (NZD/AUD)
Week’s High: 0.9416
Week’s Low: 0.9324
Australian Dollar Lower on Lack of Certainty over next RBA Interest Rate Decision
The Australian Dollar has been mixed against currency peers like the Pound, Euro and US Dollar in recent days as domestic data has either been lacking or disappointing.
In terms of actual economic announcements, the ANZ Roy Morgan weekly consumer confidence index for July has rose from 114.9 to 115.5, while highly influential Q2 inflation rate stats climbed on the quarter but fell on the year.
While on the face of it rising quarterly inflation is beneficial, the more notable slip on the year has had the ultimate overriding effect.
In addition to domestic troubles, the ‘Aussie’ has also been held back by uncertainty among investors about the odds of a Fed interest rate hike in July.
Australian Dollar Forecast: Trade Balance and RBA Rate Decision due Next Week
The remainder of the present week is not expected to be particularly dramatic in terms of Australian data, with the most notable remaining ecostat being Friday morning’s private sector credit result for June. As of writing, a minor improvement from 0.4% to 0.49% had been forecast.
Looking further ahead, the week to come will see the announcement of both the Australian trade balance for June, as well as the Reserve Bank of Australia (RBA) interest rate decision for the present month.
The current trade deficit is not expected to shift much on the current –AU$2.2bn figure, while the RBA has been predicted to leave the interest rate at 1.75% for July. A surprising rate cut from the institution or hints that a rate cut could be forthcoming may see the Australian Dollar spiral lower against peers like the Pound and US Dollar.