Australian Dollar (AUD) outperforming global currencies - USD and EUR showing signs of weakness
On the way up
If you're wondering how the Australian Dollar has been performing against other major currencies, here's a quick guide. The Australian Dollar has been outperforming most of the other major currencies and has grown quite rapidly against the USD in recent months and is now hovering between 1.07 and 1.08 USD.
Australian Dollar (AUD) : United States Dollar (USD)
As at 30 December 2011, the AUD was buying 1.0156 USD. For the first half of January 2012, the AUD was hovering between 1.02 and 1.035 USD. As of 18 January 2012, the AUD has shot up past 1.04 USD and has continued to outperform the USD, buying 1.08 USD on 9 February 2012 before slowing down and retreating to between 1.07 and 1.08 USD by 13 February 2012. Whether this trend will increase will depend on decisions made by the Australian government as well as the state of the United States economy.
The decision for the Reserve Bank of Australia (RBA) to leave the official cash rate at 4.25% has further buoyed and held the value of the Australian dollar with investors feeling a sense of security and positive investment return in Australia in comparison to most other industrialised and developed nations throughout the world.
Australian Dollar (AUD) : Euro (EUR)
As at 30 December 2011, the AUD was buying 0.7847 and had shown further increases by hitting 0.8012 Euro on 9 January 2012 and steadily rising to reach 0.8105 by 13 February.
The AUD is predicted to further steadily increase against the Euro and constantly reach record highs in the global markets. With the European Union failing to provide convincing bailout packages and measures to prevent the collapse of European Union countries including Greece, Spain and Italy, the EU and it's currency looks to be losing confidence among global players, with investors looking to put their funds elsewhere for a more secure investment and return.
Australian Dollar (AUD) : Great Britain Pound (GBP)
As at 30 December 2011, the AUD was buying 0.6589 GBP. This has further steadily increased constantly to now buy 0.6801 by 13 February 2012.
It doesn't look to be stopping here with the AUD breaking records all around. The increase in the AUD to GBP is primarily due to the resilience of the AUD in the global markets and the confidence in the Australian economy.
If you're an Australian looking to travel overseas, now is your best time. Don't be surprised if the Australian Dollar takes a slide in March 2012 when the RBA has their monthly meeting and are predicted to reduce the official cash rate yet again. The Australian Dollar should still shine strongly against most major currencies, in particular the United States, where the economic outlook is still uncertain and doesn't seem to have improved investor confidence in recent years following the GFC that struck the global economy in 2007.