Our weekly market updates cover all the big currency changes you need to know about when sending money overseas. Check out this weeks’ updates below.
AUD Breaks 0.7000 against the USD and soars against most majors.
The AUD has jumped against several major currencies over the last few days, posting near 2-year highs against the USD, 11-month highs against the GBP and 10-month highs against the EUR.
AUD – USD
The AUD has finally broken above the 0.7000 mark against the greenback. The recent movement has been driven by USD weakness, which fell against most of the major currencies last week. Trump has now backed down on Greenland, however the market didn’t take kindly to the threat of further tariffs.
Trump has long been a supporter of lower interest rates in the US, and political use of courts to force interest rates down has thrown uncertainty into the market. Whilst this plays out, the US dollar may remain subdued.
AUD – GBP
AUD – GBP has made its way above the 0.5000 mark, settling in this morning at 0.5050 as expectations for an RBA interest rate hike next week increases. Inflation has remained higher than the RBA would like, alongside employment data last week showing a surprise drop in the unemployment rate to 4.1%, and a solid increase in the employment figure as well.
UK inflation also persists, which the Bank of England are watching closely. For now, the AUD remains on top.
AUD – EUR
Against the EUR, the Aussie has been creeping up slowly over the last few months, toward the high 0.50s. The past three days have taken the rate back above 0.5800 for the first time since April last year. The moves are driven again by the RBA’s potential interest rate hike, with little data coming from Europe throughout January.
If you’re looking to take advantage of the rates or would like to hear more around how we can help with your transfer, please call our team on 1800 982 418.
