As USD interest rates have surpassed Aussie Dollar rates, and there are no hikes on the horizon, we may see continued pressure on the Aussie Dollar in the coming months. The AUD report below discusses how this is likely to affect exchange rates in the coming months. The table below shows the difference in AUD you could have achieved when buying £200,000.00 during the high and low points of the past 30 days.

Currency Pair% ChangeDifference on £200,000
GBPAUD4.21%AUD $17,760
Australian employment figures due tonight

Interest rates to put pressure on the Australian dollar

In general it’s been a tough start to the year for Australian dollar exchange rates even though the Reserve Bank of Australia continue to remain upbeat forecasting 3% growth for this year and next, improved inflation throughout the year and an improved labour market.

However with Australian interest rates at a record low of 1.5% and the markets not expecting a rate hike until late 2018, I expect this to be a major contributor to why the Australian dollar will devalue in the upcoming months. Globally interest rate are being hiked and in particular the US continue to state they will continue to tighten monetary policy in the months and years to come.

Economic data that will influence Australian dollar exchange rates

The key data release to look out for this week is the HIA New Home Sales numbers released Friday morning. Last month figure of -2% put pressure on the Australian dollar as it’s clear to see the leading cities have had a slowdown. A similar figure will put pressure on the dollar. In addition all eyes will then turn to next week’s RBA interest rate decision Tuesday morning. If the RBA continue with the positive vibes this could give the Australian dollar a small boost however it appears that many currency speculators have looked past the recent comments from the RBA. 

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.