Further poor Chinese data led to another poor showing for the Australian Dollar against most major currencies during the course of last week.
China really is experiencing a tough month thus far and although markets had been expecting a cagey period for Chinese data it has been surprising just how bad it has been, along with the well-publicised Yuan devaluation.
I speak with a lot of clients that are over in Australia and a number of industries over there are now starting to find things tough and it appears the economy and currency that managed to survive the initial earthquake of the global economic crisis is suffering badly from the aftershocks. On top of this it appears that the unwinding of carry trades is also having quite an impact on the value of the AUD with is being a perceived ‘riskier’ currency.
With this in mind if I had Australian Dollars to sell I would look at booking out a fair amount of my requirement if not all of it and if I was buying Australian Dollars I may secure chunks as we see spikes along the way.
Governor of the RBA Glenn Stevens is due to speak late on Tuesday night/Wednesday morning so those with an Australian Dollar requirement should ensure they look at securing their currency or having an order in place in advance of this.
Stevens is well known for changing his mind like the wind and any comments on future interest rate change or downbeat comments about the economy could lead to quite a lot of volatility overnight for the Australian Dollar.
Thank you for reading my Australian Dollar currency report, I hope you found it informative. If you would like to discuss anything in this report, or you are looking to buy or sell Australian Dollars, please feel free to contact me at firstname.lastname@example.org.