So, you’re planning a move to Australia! Well, in that case you’ll have to get your head around a new currency. The country uses Australian Dollars, but what does that mean for you?
Well, for starters you’ll need to have a basic understanding of exchange rates and how shifts in the currency market can impact currency transfers.
Exchange rates are always fluctuating, and the value of the Australian Dollar can be affected by everything from iron ore prices to news from the US.
This means you could get more or less for your money when transferring funds overseas depending on how the Australian Dollar is doing.
Sometimes exchange rates can move dramatically in the space of a few days – or even a few hours – but on other occasions a currency pair can remain relatively stable.
So, what difference have we seen in exchange rates this week?
- British Pound to Australian Dollar (GBP/AUD)
- Opened the week at AU$1.62
- Closed the week at AU$1.62
- No difference of cents per Pounds.
US Dollar to Australian Dollar (USD/AUD)
- Opened the week at AU$1.33
- Closed the week at AU$1.32
- Difference of -1 cent per US Dollar – You’d get AU$1 less for every $100 you moved overseas.
Euro to Australian Dollar (EUR/AUD)
- Opened the week at AU$1.41
- Closed the week at AU$1.41
- No difference of cents per Euros.
New Zealand Dollar to Australian Dollar (NZD/AUD)
- Opened the week at AU$0.95
- Closed the week at AU$0.95
- No difference of cents per New Zealand Dollar
What Will the Australian Dollar do Next Week?
If you’re going to need to move money abroad in the near future it pays to stay on top of the latest currency news. Here are the 3 main events likely to impact AUD next week and a brief forecast for what the currency might do next.
- Australian Unemployment Data – Australia’s labour market has been through a turbulent patch in recent months. A better-than-expected result on Thursday could encourage the Reserve Bank of Australia (RBA) to shift to a more optimistic 2017 outlook.
- Donald Trump’s Presidential Inauguration – Donald Trump will become the 45th President of the USA on Friday. His actions soon after taking office are likely to have a direct effect on risk-sentiment for the coming week; for example if he boosts the odds of Federal Reserve interest rate hikes with signs of new hawkish fiscal policies.
- Australia’s Q4 2016 Inflation Figures – Due for publication next Wednesday, Australia’s Q4 Consumer Price Index (CPI) could improve demand for the Australian Dollar if it beats expectations.
Demand for the Australian Dollar is likely to shrink in the coming week as traders move to safer currencies for the first week of the highly uncertain Trump Presidency. However, the long-term outlook for AUD could improve if Australia’s upcoming unemployment and inflation figures beat expectations.
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