The Australian Dollar (AUD) conversion rates complex is set to strengthen against the pound, US dollar in the near-term outlook. Reserve bank of Australia are forecast to keep monetary policy unchanged in 2016-2017 according to Leading currency exchange analysts at ABN AMRO.
The Australian Dollar continued to firm on Tuesday afternoon as Australian markets highly anticipated Wednesday’s Asian session and the publication of Australia’s Q3 Consumer Price Index (CPI) stats.
Investors were optimistic despite last week’s disappointing employment results. If inflation fails to meet expectations, the Australian Dollar could quickly shed its recent gains and fall further.
Investors were happy enough to overlook a sharp dip in the latest ANZ Roy Morgan Weekly Consumer Confidence Index, with an improved atmosphere of risk appetite benefiting the Australian Dollar.
The appeal of the US Dollar, meanwhile, has fluctuated in response to the conflicting outlook of various Federal Open Market Committee (FOMC) members, with the consensus increasing that interest rates will remain low for longer.
The Australian Dollar to US Dollar (AUD USD) exchange rate gave up most of its Monday advances once American markets opened for the day, as solid US data and Fed rate hike bets left the ‘Greenback’ bullish once again.
Markit published its preliminary October US Manufacturing PMI on Monday afternoon, which beat expectations and improved from September’s disappointing 51.5 to 53.2.
Commodity prices have recovered somewhat at the start of the week, offering a boost to the Australian Dollar as risk appetite picks back up.
Even so, if the latest commentary from Fed policymakers proves hawkish on Monday afternoon then the Australian Dollar to US Dollar exchange rate may struggle to hold onto its recent gains.
In their most recent AUD forecasts, ABN AMRO suggest the Australian dollar could rise against the US dollar towards the end of 2016, early 2017.
"We see a material risk that the AUD/USD will be stronger than our 2016 year end forecast of 0.74."
"In the short term, the technical outlook is in favor of prices retesting key resistance zone around 0.7700-0.7750."
"China’s Q3 GDP (19 October) and Australia employment numbers (20 October) will be crucial. We expect economic growth in China to remain steady around 6.7%, which is line with market expectations."
"However we are less optimistic on market expectations that the Australian economy added 15k jobs in September. We favor fading any recovery in the AUD towards 0.78."
Other AUD Currency Exchange News
Current Pound Sterling (GBP) Exchange Rates
On Monday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
The GBP to GBP exchange rate converts at 1 today.
The pound conversion rate (against euro) is quoted at 1.166 EUR/GBP.
FX markets see the pound vs us dollar exchange rate converting at 1.255.
NB: the forex rates mentioned above, revised as of 6th May 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.