Thread: OzForex Market Update (23/08/2010 - 27/08/2010)

Hi All,


Australia’s election results, or lack thereof, have hung heavy on the Australian Dollar. The Aussie fell from last week’s pre-election high of 0.5825 British Pounds to as low as 0.5675 against the Pound this week. Following the post-election knee jerk reaction, the Australian Dollar initially recouped losses as traders bet the political stalemate will result in a coalition government which will postpone or reduce the widely unpopular proposed mining tax. Midweek positive Australian construction and Japanese export figures spurred the Aussie on however amid the increasing risk of a renewed recession in the US see investors jumping ship late in the week.

Surveys out of the UK revealed consumer finances and business finances were on the bend down as Prime Minister David Cameron’s budget cuts begin to curb economic growth. Sterling pessimism early in the week weakened the Pound against the USD sending the Greenback to a one month high of 0.6500. The Euro and Kiwi also gained on the Pound before discouraging news out of the US enticed investors to choose the safety of alpha currencies. The Euro stays capped at 0.8200 against the neighbouring Sterling despite improved business climate in Europe.

I hope you find the information above useful, I thank everyone for their questions to date.


Regards


Jon Sermon
Alliance Manager
www.ozforex.com.au

Nice one.

Good info there, Jon.

No worries, feel free to message me if you have any further questions.