Australian dollar to be kept on the back foot this week by key releases; job advertisements fail to impress
- Category: Australian Dollar Articles
- Published: Monday, 04 February 2013 10:52
- Written by Sam Coventry
The pound / Australian dollar exchange rate is 0.06 pct higher; GBP/AUD is at 1.5092.
The euro / Australian dollar rate is 0.61 pct lower at 1.3032.
The Australian dollar / US dollar exchange rate is 0.22 pct higher at 1.0430.
Please be aware that these are spot market rates and that your bank will add their own discretionary charge to the rate. An independent FX provider will however guarantee to beat the rate offered by your bank, thereby delivering you more currency. Please find out more here.
Australian dollar under-performance set to continue?
The Australian dollar has been suffering through the course of 2013 thanks to a general shift in global investor sentiment.
The safe AAA countries are seeing their currencies sold off as investors opt for high-yielding riskier assets - such as Eurozone peripheral products.
Adding pressure is the belief that the Australian economy is slowing, particularly as the massive commodity boom plateaus.
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"AUD underperformed on Friday; manufacturing PMI fell to the lowest level since mid 2009 and the slightly softer China PMIs weighed on AUD. But AUD has also lost its characteristic as the main beneficiary in ‘risk positive’ environments with EUR and USD now more preferred," says a morning market comment from Lloyds Bank.
There are key releases from Australia this week, which could see AUD on the back foot.
"The RBA meeting tomorrow will be the main focus; expectations of a rate has pared back but risks remain for tomorrow’s meeting, and with a possible rate cut further down the line a dovish tone is likely in the statement," say Lloyds.
Retail sales and employment data later this week will also be of interest.
Australian job advertisements also add pressure
After 10 consecutive monthly declines, job advertisements fell 0.9% in January.
"Within the context of the very large swings that occur in job advertising over the December/January holiday period this can be broadly characterised as a flat outcome in the month. As in previous years, it will not be until February data are released in early March that a clearer read on recent job advertising trends becomes available," say ANZ Bank.
ANZ advise that they expect the RBA to leave interest rates unchanged at its February board meeting, while it assesses incoming data to see if and when further monetary accommodation is required.