Our weekly market updates cover all the big currency changes you need to know about when sending money overseas.
This week, the market continues to be driven by global geopolitical events, as despite conflicting reports of ongoing negotiation, the conflict in the Middle East shows no signs of de-escalation. On Monday, the USD rallied off the back of recent reports citing the possibility of military personnel being deployed to the region.
Updates to watch this week
USD Strengthening
The haven demand on the greenback has become exceedingly apparent, with the USD strengthening significantly over the last week. With no novel data out of Australia recently, and energy price inflation continuing to climb, this has led to the AUDUSD rate falling to 0.6853 at market open this morning. The US unemployment rate is expected at the end of this week, with things remaining quiet on the AU front.
GBP Volatility
The GBP continues to rock under sky-high energy prices, and continual negative sentiment regarding leadership from Labour’s Starmer. Though, with a stronger USD and weaker AUD this week, the AUDGBP rate has fallen in favour of the pound, sitting at 0.5177 this morning.
Eurozone Under Pressure
The pound has fallen slightly against the Euro – though, comparatively the GBP is fairing much better in this conflict than EUR, with the Eurozone’s reliance on imported energy supplies causing inflationary pain as of recent. The GBPEUR rate is currently sitting at 1.1517, with the general softening we have seen in the rates continuing through to the AUDEUR, with is now sitting at 0.5963 at market open.
Major currency movements
NZD
The NZD has continued to weaken as geopolitical developments drive inflationary pressures on the market. The NZDUSD rate fell -0.22% at market open this morning to 0.5733, not unexpected given the weak data and doveish sentiment from the RBNZ recently. The AUDNZD rate took a slight drop as the AUD weakened, still sitting at a relatively strong 1.1954 at market open.
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