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.
The FX market has seen some interesting movement off the back of political announcements and various rumoured bank rate changes. Here is the topline, and what it means for the major currencies:
AUD
The AUD has remained solid, maintaining it’s almost two-year high against the USD over the weekend, with a mild decrease as markets open, sitting at 0.6957. Expected upcoming announcements on the cash rate from the Reserve Bank of Australia today have seen to the Aussie dollar maintaining its strong position, particularly against the GBP, where predicted rate cuts have softened the pound’s position in comparison. The AUD continues to perform well against most major currencies.
USD
The USD was recently seen at a two-year low against some of the major currencies. Whilst still weak, the greenback has regained a some of its lost ground in recent days as political volatility has decreased in the US. Trump’s pick of Warsh as the next Federal Reserve chair has regained some confidence in the USD – the full impact of this move will be seen in the coming weeks.
EUR
The recent announcement of strong GDP growth in the eurozone, despite a decrease in exports has supported the euro in maintaining its positioned this week. The AUDEUR rate remains up at 0.5889, as forementioned, impacted by incoming RBA announcements on the Aussie side. Against the pound, the euro has lost some of its recently gained traction, sitting at 0.8669.
GBP
The GBP has softened as more positive sentiment around the USD has recently been circulating due to Trump’s nomination of a new chair of the Federal Reserve – with the USD sitting against the pound at 1.3674. Moreover, rumoured rate cuts from the Bank of England expected to be announced on Thursday have further impacted the pound’s position. The AUD is still sitting around the 1-year highs at 0.5089 against the GBP. We’ll see this week how the rate announcements from the RBA and BoE play out.
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