As promised here’s a brief update on what’s been happening with the Australian Dollar over the last week.
The big news from last week was the employment report that saw the Unemployment Rate (5.3%) hit an 11 month low and Employment Change (+52.7k) outstrip expectations by nearly 3.5 times.
The fifth straight month of employment increases expectations that the RBA rate hike pause may be short-lived and therefore helped the AUD shrug off sovereign debt worries and trade above 1.80 for the first time in a week.
Elsewhere the data was not quite so bullish as Westpac Consumer Sentiment (-2.6%) fell as interest rate concerns undermined confidence and Home Loans (-5.5% m/m) declined leaving the market pricing only a 20% chance of a rate hike at the next RBA meeting on March 2. This week Business Confidence and the Monetary Policy Meeting Minutes will be the highlights on the domestic front.
GBP/AUD Movement – High’s & Low’s of last week (08-02-10 to 12-02-10)
A movement of: 2.25%
Difference on £200k
High: AUD 365,700
Low: AUD 357,640
Difference of: AUD 8,060
Whilst FX isn't the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.
A further update will be added next week.