Last week’s high: AU$1.7690
Last week’s low: AU$1.7401
Volatility as Australia Gets Fifth Prime Minister in Five Years
Political turmoil dominated the mood towards the Australian Dollar last week as divisions within the governing Liberal party spilled over.
Although Malcolm Turnbull succeeded in seeing off the first leadership challenge on Tuesday he was ultimately ousted by the end of the week.
While Australia now has its fifth Prime Minister in as many years the negative impact on AUD exchange rates diminished once the position had changed hands.
With the sense of political uncertainty easing, for the time being at least, the Australian Dollar began to recover some of its losses.
Confidence in the Pound, on the other hand, remained limited as officials acknowledged that Brexit negotiations will not be concluded by the EU’s original October target.
AUD Outlook: Political Calm Likely to Benefit Australian Dollar
Providing that there is no fresh outbreak of political infighting, AUD exchange rates are likely to remain on a stronger footing this week.
A fresh increase in Australian private capital expenditure in the second quarter could encourage the ‘Aussie’ to push higher across the board.
However, the antipodean currency remains vulnerable to any deterioration in global market sentiment over the coming days as the trade spat between the US and China continues.
Worries over Brexit are likely to continue dragging on the GBP/AUD exchange rate, meanwhile, as the threat of the UK leaving the EU without a deal hangs over the economic outlook.
02:30 Australian Building Approvals (Jul)
02:30 Australian Private Capital Expenditure (2Q)
09:30 UK Net Consumer Credit (Jul)
00:01 UK GfK Consumer Confidence Index (AUG)
02:30 Australian Private Sector Credit (Jul)
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