Thanks to the early morning announcement from the Reserve Bank of Australia (RBA), stating that they would be keeping interest rates at 0.75%, investors have been able to breathe a sigh of relief once more. With investors happy, everything going as forecasted and the AUD starting to climb again on the interbank exchange rate, it has definitely been a strong week for Australia.

Coronavirus' affect on the Australia

With news of the Coronavirus affecting the AUD more than some expected last week, these jitters wearing off is even further good news for investors who saw the RBA issue a rallying statement addressing the issue head on.

This has seemed to quell unrest for now, but it remains to be seen whether or not this unrest will resurface again when more news breaks regarding death tolls and especially whether or not it might be becoming an epidemic in the Western world.

Whilst the breakout is the single biggest threat to global markets at present, there may well be opportunity in this situation for the AUD, with researchers in China reassuring the world that they have now found a cure. This may well mean that the AUD can climb out of the red - where it has resided for several weeks - and attempt to edge itself over the GBP.

Reserve Bank of Australia Outlook Confidence

Reserve Bank of Australia Outlook Confidence

Finally, with RBA optimism driving the AUD upwards, paired with the statement put out earlier in the week from the Australian Monetary Police, there is a cautiously optimistic outlook on the horizon heading into next week. We could be about to see a much clearer picture thanks to the interest rate cut looking to be all but ruled out now.

 

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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.