Q4 Review of the Australian Dollar (AUD) Exchange Rate29 December 2017 by FC Exchange
As the year comes to a close, currency experts FC Exchange take a look back on the Australian dollar’s performance in the last quarter.
A few times this quarter the Australian dollar has fluctuated on data from the nation’s largest trading partner, China. For instance, China’s service activity slumped to a 21-month low in September at only 50.6. Any figure above 50.0 shows growth, a figure below denotes contraction. For contrast, August had resided at a healthier 52.7. On the flip side, China’s imports rose nicely in September to 19.5% on the year – a factor that saw the Aussie climb.
There’s been some good data out of Australia too, such as the unemployment rate hitting a three-year low. The September reading came in at 5.5%, a slip slightly lower from the previous 5.6%. While some weeks the Aussie has been able to climb by around 2.0% against the pound (AUD/GBP), other weeks have seen the GBP/AUD exchange rate hit multi-month highs following signs of Brexit optimism.
The Reserve Bank of Australia (RBA) has also created some currency fluctuations in the final quarter of the year. Back in October, the central bank stated it hadn’t ruled out further interest rate cuts if households needed it, and the Aussie dollar weakened in response. The Aussie has been pressured lower towards the close of the quarter as the RBA has announced it has some wage growth concerns.
The Australian dollar to New Zealand dollar hit a 17-month high this quarter when New Zealand experienced a shaky election. The election not only yielded an unclear result, it also resulted in the Labour party taking power for the first time in almost 10 years, led by New Zealand’s youngest ever Prime Minister – Jacinda Ardern. This political uncertainty sent not just ripples, but waves, through the market which lasted for months, creating some opportune moments for the AUD/NZD exchange rate to strengthen.
Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.
Learn more about the Australian Dollar – Contact FC Exchange: Get A Quote
Want to live and work Down Under? Click here for expert help: Skilled Migration to Australia
Want to get a job Down Under? Click here for expert help: How to Get a Job in Australia
Click here for expert help with travel visas: Travel Visas to Australia
Click here for tourist information about Australia: Visit Australia