AUD finished with mixed results when the scoreboard was revealed in Sydney at 7 a.m. on Friday 21st September. Although it was able to stand strong against USD, other pairings mostly fell. The results of the scoreboard were as follows:
AUD/USD 0.7291 0.0028 0.39%
AUD/JPY 82.02 0.48 0.59%
AUD/CNH 4.9833 0.0082 0.16%
AUD/EUR 0.6190 -0.0032 -0.51%
AUD/GBP 0.5494 -0.0031 -0.56%
AUD/NZD 1.0902 -0.0073 -0.67%
AUD/CAD 0.9407 0.002 0.21%
The Australian dollar had seen an increase earlier in the week, and stood firmly on 20th September, hitting .7292.
The results follow news that China plans to cut its tariff rates on imports. The fact that this could be as soon as next month has instilled more confidence in AUD as a result. Strong gains in European and US stocks were also a strong factor for the robust stance of AUD.
The Australian dollar was supported by a growth in goods and services during the June quarter. Pound sterling was also aided by strong retail sales.
Gains against the Canadian dollar can be attributed to a tweet posted by US Prime Minister Donald Trump, who stated the following on 20th September 2018.
“We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now”
This is much to-and-and for within the sector at the moment, as Saudi Arabia try to balance an agreement that appeases its ally in Washington, without causing friction with the oil producers by making agreements without their involvement.
Trump is wishing for Saudi Arabia to produce more oil to keep prices low as sanctions are restored in Iran. The Saudis hope to make an ad hoc alliance more permanent. The alliance was initially put in place two years ago to end the oil price downturn.
Pound sterling forecasts continue to be hinged on the debate as to whether a ‘hard’ or ‘soft’ Brexit should be employed. European leaders have rejected the Chequer’s plan put forward by British Prime Minister Theresa May, meaning that exchange rates hinge on the outcome, despite impressive retail states of late.
This means that as the window for an agreement to be put in place becomes smaller, every day moving forward must be used for discussions, or there could be a risk of a Brexit with no viable solution in place.
Both USD and GBP are seeing the after effects of decisions being made, meaning that the foreign exchange rate can show subpar results at time. However, as currency news continues to make a difference as to how currencies are viewed, there’s no real way of determining how both currencies will fair until some decisions are finalised.