Australian Dollar US Dollar 2017 Exchange Rate Advances on Trump Inauguration Jitters
The Australian Dollar US Dollar 2017 exchange rate edged towards the week’s best levels once again on Thursday as investors remained jittery on the US Dollar ahead of Friday’s Trump inauguration. AUD USD has gained over half a cent since the week began and is currently trending above the level of 0.75.
If you're looking to make an international money transfer, we recommend TorFX.
Australian Dollar (AUD) Bolstered by Domestic Employment Report
The Australian Dollar appears to be the risky currency of choice for many investors this week, as the ‘Aussie’ has held its ground despite dipping commodity prices and fluctuations in risk-sentiment.
Solid data has helped the ‘Aussie’ this week, including Thursday’s Australian unemployment report from December. Despite the unemployment rate worsening to 5.8%, this was due to an increase participation rate of 64.7%.
The number of new jobs made in December was also better than expected. Forecast to only increase by 10k, an impressive 13.5k new jobs were made.
US Dollar (USD) Fluctuates Ahead of Friday’s Trump Inauguration
Demand for the US Dollar has faltered this week, as markets are becoming increasingly uncertain about what to expect from the upcoming Trump Presidency in the US.
Just this week, Donald Trump shook markets by stating that the US Dollar was too strong and was harming US businesses. It is highly unorthodox for a US head of state to comment on currency value and as a result it sent traders into a USD-selling panic.
While the US Dollar improved slightly during Wednesday’s American session due to solid US inflation figures, demand for the ‘Greenback’ slipped again on Thursday as anxiety about the upcoming inauguration took hold of USD trade.
Australian Dollar US Dollar 2017 Forecast: Trump’s First Weekend in Office to affect AUD USD
The Australian Dollar US Dollar 2017 exchange rate is likely to see high volatility in the coming days.
US President-elect Donald Trump will take office during Friday’s American session, meaning Asian markets will have to wait until Monday to react to the actions (or lack of actions) Trump takes in his first days of office.
While this is to be the biggest event for markets this week, AUD USD may be slightly affected by Australia’s November new home sales figures from HIA. If these impress, investors may favour the Australian Dollar if Trump’s first days in office lead to a risk-rally.
Traders may look to risky investments early next week if Trump’s actions indicate that the US economy will not see the economic boost he previously promised as quickly as hoped.
However, if Trump begins to sever US trade ties with the world, risky currencies are sure to plummet, driving USD higher as investors flock to safety. This would also cause commodity prices such as iron ore to fall, which would have a strong downside effect on AUD.
AUD USD Interbank Rate
At the time of writing, the Australian Dollar US Dollar 2017 exchange rate trended in the region of 0.75, while the US Dollar Australian Dollar exchange rate trended at around 1.32.