The Australian Dollar surged to make its strongest weekly gains since December 2011 as the outcome of the weekends Federal Elections and the weaker-than-expected US jobs data supported the currency.
For the first time in three weeks the ‘Aussie’ has surpassed the 92 cents per US Dollar mark and against Sterling reached the 1.70p mark. On Saturday it peaked at its highest level since August the 19th. The reason for the currency’s reversal in fortune was the publication of data out of the United States that disappointed the markets.
“The market got over-positioned after the very strong ADP numbers and strong data we’ve had from the US over the past couple of weeks, We were expecting a much better than expected number and when it came in below expectations it was an absolute monster move throughout the market. The US dollar fell 100 basis points against the yen and gold was up $US25. We’re waiting to see if we can punch above that, and if we do then we’re likely to push higher to US93.15 or so. What we’re looking at, at the moment is the improvement in the ‘Aussie’ being helped by significant improvement in economic data from China and Europe.”
Data out of the world’s second largest economy showed that Chinese exports rose by 7.2% suggesting that the world’s second strongest economy is recovering from a slump. The figure beat economist forecasts for a 5.5% improvement.
Analysts said that an economic recovery in key markets such as the US as well as a recovery in demand from Asian economies had also helped China’s exporters.
“Better exports in July and August reflect improving external demand, we think that the global economy is heading for a modest recovery in the second half of the year and that will help further sustain growth in China’s exports” said Joey Chew, an economist with Barclays.
The currency was also supported by the outcome of the weekends Federal Election which saw Tony Abbot’s Liberal-National coalition beat Kevin Rudd’s Labour Party. Abbots victory ends the uncertainty as to who would come out on top.
Current Australian Dollar (AUD) Exchange Rates
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9216 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6989 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5882 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4308 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6999 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8687<
Correct as of 10:35 am GMT
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