Reserve Bank of Australia Assistant Governor Debelle is due to speak this evening, this speech has been marked as one to listen out for of all the speeches this week. 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 month.

Currency Pair% ChangeDifference on £200,000
GBPAUD1.63%AUD $5760
Trade wars a potential negative trigger but US Consumer Confidence remains high

Will the Australian Dollar’s downward trend continue?

AUD performed well yesterday following optimistic trade data from China and an upbeat speech from the Reserve Bank of Australia’s Deputy Governor Kent on the housing market.

China is the number one destination for Australian exports, so an increase in China’s industrial output on Wednesday meant that demand for Iron-ore was high and as a result the AUD rallied. If the industrial recovery continues in China I wouldn’t be surprised to see the Australian Dollar continue to climb. Commodity traders have forecast higher demand as a result of China’s latest industrial data so I wouldn’t be surprised to see longer term AUD strength.

Overnight data – Consumer Inflation expectations, RBA bulletin and RBA Assistant Governor Debelle Speech

Early this morning the Melbourne Institute released its expectations for inflations over the course of the next 12 months. The rise from 3.6% to 3.7% wasn’t expected and therefore the Australian Dollar is trading ever so slightly stronger as a result.

Although this is positive, the Reserve Bank of Australia is still set on not changing monetary policy anytime soon, despite the outlook for inflation lifting ever so slightly, which would normally pave the way for future interest rate hikes down under and could cause long term AUD strength. The Australian Dollar still remains vulnerable from external factors. On Wednesday, the AUD wobbled following comments from German Chancellor Angela Merkel which stated that US goods are susceptible to tariffs if the EU cannot be exempt from the higher tariffs. With this in mind it may be looking at capitalising on spikes near term.

Looking forward to tonight and Reserve Bank of Australia Assistant Governor Debelle is due to speak at 10pm UK time. Markets have this anticipated as the one to watch out of the three other members speeches that have occurred this week, so be in touch with your broker to make sure you are covered ahead of this event.

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.