02 Dec

A year in the life of the Australian Dollar

buying australian dollars

2010 has been an interesting year for the Australian Dollar and mostly in a positive way. 'The Aussie', has outperformed most of the competition so far in 2010.

Below is a brief chronology of the major events impacting the buying & selling of Australian Dollars over the past 12 months:

25/11/09 AUD/US$ 0.9295

On the rise…

Government officials make positive comments concerning the future outlook of the Australian economy, citing that they had entered a ‘new uprising’.

4/12/09 AUD/US$ 0.9153

On the rebound…

Specialists look to understanding the relationship between the US and Aussie dollar as the Aussie continues the decline/recover cycle against its counterpart. The Australian dollar plays rebound as the US post favourable employment figures. However the rumours about the state-owned investment agency Dubai World die down, enabling the currency to benefit once more from increased risk appetite for those buying Australian Dollars.

9.12.10 AUD/US$ 0.9242

On the rise...rocketing!

Optimistic news from Dubai and China, coupled with the RBA announcing a third interest rate hike sends the Aussie Dollar rocketing today, securing the country’s position as one of the most sought out investment markets.

16/12/09 AUD/US$ 0.899

On the fall…

Sentiments change towards buying the Australian Dollar today as the RBA suggest interest rates would not likely be raised again. Previous interest rate increases have been the main reason for the currency maintaining its recent high value on the currency markets. Now though, analysts suggest it has become overpriced, as its appeal declines.

2/1/2010,AUD/US$0.8879/0.9200

Fall & Rise…

A real estate report reveals home loans have decreased adding to declining optimism about the South Pacific economy. In a day where everything seems to be against the Aussie Dollar, demand for commodities also fall as China introduces new lending requirements for banks.

6/04/10,AUD/US$0.9244

And rise again...

Speculation that the Aussie Dollar will reach parity with its US namesake was raised today, as prices for commodities rise and the nation’s economy expand, officials remain upbeat about the future of the Australian economy.

19/4/2010,AUD/US0.9170

Ready for a fall…

A halt to the recent rise to parity with the US Dollar becomes evident today due to slowing down of interest rates increases and news that China may re-evaluate the yuan. Experts predict a 16% fall in currency by the end of 2010 as high borrowing costs harm economic growth

25/5/2010,AUD/US$ 0.8124

‘Trouble in Euroland’-induced fall!

Destabilization on the currency markets extends ‘The Aussie’'s decline against the US Dollar. The North/South Korea conflict and the financial crisis in Spain effect a drop in forecast according to the National Australia Bank.

3/7/2010,AUD/US$0.8425

Fall…and significantly.

The week the Australian dollar experiences significant losses because of continuing unease regarding the proposed new mining tax. Successor to former Prime Minister Kevin Rudd pledges to rethink Rudd's original proposal, but this proves to not satisfy all investors.

27/9/2010,AUD/US$0.9604

Rise…to its highest.

The Australian dollar achieves its highest level in two years against its US equivalent on today's financial foreign exchange market. The appeal of riskier currencies is bolstered by the US Federal Reserve’s outlook of increasing stimulus and general improvement in market sentiment. It is announced that the Australian Dollar secured the position of second best performed currency for this quarter.

14/10/10,AUD/US$0.9952

Rise and rise again.

The suggestion that the global recovery is gaining momentum , including figures showing US retail growth, means the Australian dollar trades near parity with the US Dollar today at its closest ever, 0.993 interday figure.

19/10/2010,AUD/US$0.9741

And now another fall.

With China as its biggest trading partner, Chinese interest rate hikes mean Australia’s Dollar takes a slump today, less than a week after trading parity the its US counterpart. Slow Chinese growth means bad news for its South Pacific trading partner.

30/11/2010,AUD/US$0.9599

Final fall…

The Australian Dollar, not only a commodity currency but an Asian currency, weakens as business profits show an unexpected decline due unease at the North Korea, South Korea situation, and European debt just adds to the woe.

...but what of the future? With constant growth for nearly two decades that doesn’t show any sign of slowing down, Asian demand for the country’s two biggest exports coal and iron ore continues. Success also attributed to strong economic fundamentals and an unemployment rate of 5.4%. Meanwhile, as the Reserve Bank of Australia, is forecasted to lift interest rates as much as 1.5 percentage points by the end of 2011, while the U.S. continues on with near zero interest rates.

The next 12 months should be an interesting time for the economy and indeed for those buying and selling Australian Dollars!

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Exchange Rates for Thursday 17th May 2012