Send Currency Market Update 4th September 2023.

Last week saw some strength return to the AUD as the greenback lost some steam due to weak data and a possible rate halt. Positive signs from China also helped the Aussie recover some ground, but how long will this last? Moreover, August has ended, and the seasonal analysis of September tells us that the AUD tends to weaken towards the latter half of this month. This is something to take note of before making your trades.  

Let`s dive in for more details.

The AUD has faced downward pressure against different currencies, impacted by factors such as safe-haven demand, economic data, risk aversion, and monetary policy outlook. This situation is not likely to improve anytime soon, which means that AUD is likely to remain weak for the time being.

Currency Market Update 7th August 2023

Last week, the Australian dollar faced challenges against major currency pairs. The AUD/USD lost 2.11% due to a strong US dollar and positive economic data. The AUD/EUR declined 2.32% as the European Central Bank signaled a potential policy pause

 The AUD experienced mixed performance against major currency pairs last week. 

The AUD/USD pair saw robust upward momentum, driven by an optimistic domestic rate outlook and the Federal Reserve's decision to pause interest rate hikes. On the other hand, the AUD/EUR pair remained relatively stable, with market sentiment staying neutral amid expectations of the US economy outperforming the eurozone. The AUD/GBP pair experienced minor losses as the UK anticipates a rate hike from the Bank of England. In contrast, the AUD/NZD pair witnessed volatility due to divergent economic data from both countries.

The AUD-USD cross has been pressured by the U.S. debt ceiling deadlock, risk aversion, and a resilient U.S. economy supporting the dollar. The AUD-GBP pair also saw the Australian dollar depreciating due to its risk-sensitive nature and higher Bank of England rates supporting the pound. Lastly, the AUD-NZD cross experienced an upward shift for the AUD after the Reserve Bank of New Zealand's dovish rate hike announcement.

Thank You, Ian Cragg, from SEND Payments, for the Market Update.

The AUD experienced a mixed performance this week, as central banks appear to be approaching the end of their hawkish phase. The coming months will be crucial in determining the direction of central bank policies.

AUD Currency Update over last 12 months V SGD, GBP, AED

AUD V SGD has fallen by -11% since April 2022 and has struggled to reach 0.94c over the past 6 months.

Typically the currency pairing has regularly enjoyed hovering around parity. However, the lows at the moment of 0.89c that we are currently experiencing are a far cry from the $1.05 we witnessed in August 2021.

The AUD had a good week against most currencies, with the exception of the USD. The GBP and NZD were both under pressure, while the AUD was helped by positive PMI data. AUD - USD

The AUD-USD pairing fell by almost 2.75% last week. The AUD started the week on a good note, gaining around 1.25% during the first two working days of the week. This gain can be attributed to the ease in lockdowns in China, which in isolation would have given a lot of momentum to the AUD, but currencies don't work in isolation.

Currency Update 9th August by Send Payments - Ian Cragg

THE EXPATRIATE International Currency Update by our Specialist Ian Cragg from Send Payments.

The AUD had a mixed week against major currencies. It started the week on a strong note with the RBA hiking rates by 50bps. However, market sentiment quickly shifted and the AUD fell after it was clear that the RBA was moving to a more dovish policy stance. This was compounded by a strong USD, which led to a flight to safety and away from risk currencies like the AUD.

Send Payments Currency Update - 2nd August.

For the most part, the AUD had a good week against other major currency pairs. It gained some ground against the USD, EUR and NZD while losing some ground to the GBP. The overall trend seems to be in favor of the AUD for now, but as the recession materializes, investors may switch to risk off positions soon, which could trigger a market correction. In any case, it's worth keeping an eye on the AUD in the coming weeks.

Send Currency Update 21st June

The AUD had a roller coaster of a week against almost all major currencies. Risk sentiment kept the AUD pinned down in spite of overwhelmingly positive jobs data for May. With no light at the end of the tunnel, the investors are making a rush for safe-haven currencies.

The AUD struggled against all of the major currencies in the last week. The factors driving this downward trend include rising oil and commodity prices which seem to have put the investors into a risk-averse mode. There seems to be a rush for safe-haven currencies which is hitting the value of all risk-sensitive currencies like the AUD.

Currency Update 25th May - Send Payments

The US Dollar has been the main beneficiary of safe-haven flows this week as geopolitical tensions in Europe continue to escalate. The ongoing war in Ukraine and the resurgence of COVID-19 cases in China have made investors jittery, prompting them to seek refuge in the greenback.

The global economy is in a state of flux at the moment. Political and economic uncertainty caused by the situation in Ukraine is leading to fluctuations in the value of different currencies. The Australian dollar is no exception.

Send Payments Currency Update

The US Dollar has been the main beneficiary of safe-haven flows this week as geopolitical tensions in Europe continue to escalate. The ongoing war in Ukraine and the resurgence of COVID-19 cases in China have made investors jittery, prompting them to seek refuge in the greenback.