Australian Dollar vs US Dollar - which currency will be the more expensive in the short term?
Australian Dollar vs US Dollar - which currency will be the more expensive in the short term
?The Aussie Dollar crept back up toward parity against the Dollar yesterday as greater risk appetite was generally apportioned to cause losses for the US Dollar and the Japanese Yen. The AUD/USD rate moved nearly 1.5% yesterday against the Greenback and seems to have started today on a similar note.
The American Interest Rate decision is today and is likely to remain at 0.25% a statistic that doesn't bode well for the Americans, considering the Australian Base Rate of 4.75%. Other economic issues aside this alone should help the Australian Dollar to gain on a medium term trend over a less attractive US Dollar. Investors could be put off with a host of data out today in America, aside from the Interest Rate decision including PPI (Production Price Index) figures and Retail Sales.
Furthermore there has been murmurings regarding America's AAA Credit Rating dependent on Bush-era tax cuts that are due for discussion today. Although I could imagine Retail Sales to be released better than expectedoff the back of record Black Fridayfigures in the US I foresee the day more negative than positive for the US whilst it is fairly quiet today on the Australian side.
At the end of play today I would expect the Aussie to be teetering on the edge of parity against the US Dollar and could begin to really establish a firm grounding as the stronger currency against the Greenback in 2011as America struggle to get their house in order. If you are looking at purchasing Australian Dollars from US Dollars then it may be prudent to look at moving ahead sooner rather than later, as the American economy looks likely to remain fragile for at least the first two quarters of 2011.
The Overall state of the Australian economy has been far more bullish in 2010 than the American economy and whilst the Americans are on the rocky road to recovery they still have a very long way to go. The Australian economy is still managing very well with exports not showing too much sign of being harmed from an exceptionally strong Aussie Dollar.
To discuss your Currency requirement in depth with a specialist Broker follow the links on my bio or call me directly to discuss any of the issues mentioned in this article. Keeping abreast on market movement can save you thousands on your transfer - the 1.5% movement yesterday meant to purchase AUD 200,000 would have cost you an extra $2,190.87 at the low compared to the high!! Get the Real Taste of the India with Colorful Rajasthan Tour Paris- Paradise On Earth Tamil Thai Pongal Day – A Festival of Reunion, Renewal and Thanksgiving Christmas is a memorial to the virgin mary Best Christmas Gifts UTSAVAM 2010-11 – Festival of Folk Art and Dance of Kerala Travel trailer rental – A Cheap Way to Travel Around Celebrating Your Victories as You Learn French Fast Choosing a travel insurer? Choose Holiday Extras Insurance Traveling To Florida For the Orange Bowl Las Vegas Tours - How to Get a Discount Grand Canyon Skywalk Trip Going on Holiday - Avoid these three money drainers Top Christmas Toys 2010