top of page

Australian Dollar Update, November 5th 2021

Updated: Jan 24, 2022

The Australian Dollar has been stronger in the last month, moving from 0.7250 to 0.7550 since October 5th, however after Tuesday's comments from the RBA around interest rates the local Aussie has started to lose that momentum and dropped back below 0.74c as of this morning. The AUDUSD has dropped below 0.74c for the first time in 14 days, touching a low of 0.7382 this morning, after a combination of weakness in the AUD due to the RBA comments then better than expected data from the US, giving the US Dollar a boost towards the end of the week against most G10 currencies. The Federal Reserve has left the door open for a quicker change in policy around interest rates, whereas Australia kept the lid on their plans and seem to be happy to keep record low interest rates for longer, which has been the biggest mover of the rates and sentiment this week. Coupled with lower than expected Q3 retail sales in Australia and higher than expected jobless claims in the US, the greenback has taken the front foot again for now. As of this morning the AUD/USD exchange rate is trading at 0.7390-0.7400.

Dollar Chart

Other news items and currencies of note this week


GBP/AUD - The GBP has seen a fall from $1.87 to $1.82 this month as the AUD was gaining momentum, and didn't lose it against the GBP as the Bank of England also spoke about leaving interest rates and their QE program unchanged for now. They BoE want to see further labour data figures moving forward before they adjust their plans and this has weighed heavily on the GBP for now.


Sitting at approx. 6 months lows for the GBP/AUD currently at $1.8219 this morning.


NZD/AUD - The RBNZ made their move and raised interest rates this week, however not a great change in their currency against the Aussie as it's hovered and seesawed between 0.9430 - 0.9600 in the past 4 weeks, a sharp few days up has the Kiwi back in favour and against reaching towards the 12 months highs around 0.96+ - a positive time to move NZD across the ditch. With the NZ unemployment rate also being a surprise improvement a bit of better feel good factor to the Kiwi at the moment.


The NZD/AUD is trading at 0.9591 this morning.


EUR/USD - This pair is now approaching the lows of $1.1550 it reached in early October which was last reached in July 2020 with some analysts believing it has further to fall. Again the current market moves are being driven largely around inflation and interest rate topics, along with renewed favour of the USD this week and a strong USD across the board is seeing many concerned that the EUR/USD price could fall al little further.


The EUR/USD is trading at 1.1553 this morning.

7 views0 comments
bottom of page