Send 4th December AUD Currency Update
Send Payments 4th December AUD Currency Update.
Gold is breaking an all-time high -
Why is this good for the Aussie Dollar?
We wanted to share a notable development in the financial landscape – the Australian dollar gold price hit an all-time record high this week, briefly reaching $3,130 AUD per ounce on Friday morning.
Sandra Close, a gold industry consultant at Surbiton Associates, highlighted that the metal has traditionally served as a safe haven for investors. According to Dr. Close, the primary catalyst for the recent price increase is the prevailing uncertainty in global markets.
In November, gold closed at its highest level ever for a month. This is happening because global interest rates on bonds are decreasing, making inflation cool off a bit. This situation is good for the Australian dollar against the US dollar (AUD/USD).
Things to look out for this week;
Tuesday 5th December - Reserve Bank of Australia interest rate announcement:
What this means is that the higher the interest rate, the more attractive the AUD currency is for the investors due to a more significant return on investment (ROI). The RBA is expected to hold interest at the current 4.35%; any changes to the rate could cause volatility for the Aussie Dollar.
Thursday 7th December - Bank of Canada interest rate announcement:
What this means is that the higher the interest rate, the more attractive the currency is for the investors due to a more significant return on investment (ROI). Similarly to the RBA, the BOC is expected to hold rates at 5% for the 4th time in a row.
Friday 8th Dec - USD employment claims:
The unemployment claims within the US will give a clearer view of the number of people who have filed for unemployment for the first time - in the past week. The Federal Reserve closely monitors employment levels as a critical indicator of the American economy. Generally, if the reading comes out below the forecast, this can be negative for the USD.
AUD-USD 🇺🇸
Fx rates are currently sitting at the highest level since Aug 1 for the AUD. 0.6661 (3:00PM AEST)
AUD-GBP 🇬🇧
Rates for AUD TO GBP are at a 1 month high at 0.5252 (3:00PM AEST)
AUD-NZD 🇳🇿
AUD to NZD has dropped to the current rate of 1.0746 compared to the previous week.
(3:00PM AEST)
AUD-EUR 🇪🇺
AUD to the EUR is at a staggering high of 0.6120, the highest within a 3 month period.
(3:00PM AEST)
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