Importers breathed a sigh of relief this week as the AUD continued to strengthen against all major currencies. Trading last week saw the AUD reach a six month high against the USD as the Aussie Dollar broke through the 0.750 mark.
The jump saw businesses making AUD – USD payments pay 10% less than they would have in January. Market watchers attributed these gains to a rise in commodity prices, particularly in the oil and base metal markets.
The AUD also made material gains against the GBP, with the Sterling falling to its lowest since March 2015. Weaker than expected UK retail sales data, concerns over the Uk leaving the EU, together with growing concerns around the size of the current account deficit, placed downwards pressure on the Pound.
London mayor, Boris Johnson has made comments in support of “Brexit”; the campaign that could see Britain leave the EU. The political instability around the upcoming EU referendum contributed to the devaluation of the Pound. The AUD reached 0.530 to the Pound at the close of trading for the week.