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Australian Dollar Getting Cheaper by the Day as Further Economic Data Drags Currency Lower

There is good news for those in the US, Europe, Japan, Singapore, the UK, New Zealand, Taiwan, India, Mexico and just about anywhere at all, and that news is: that the Australian dollar is offering itself up for sale, in a buy 1 get all special.

If you’ve always dreamt of cuddling that koala, buying that Melbourne property or making payment for a lifetime supply of kangaroo wrestling gloves, now is the time to do it, the time to buy it, and the time to send that money.

As if tumbling iron ore, a bullish FOMC, shrinking China Services PMIs, a declining trade surplus and negative home sales growth wasn’t enough to drag the Australian dollar down from this year’s exchange rate highs in February and March, this morning we’ve been informed that we can also throw disappointing retail sales figures onto the Aussie rubbish heap.

Australian retail sales had been forecast to grow 0.3% in March but instead fell by 0.1%, said the Australian Bureau of Statistics (ABS) this morning. And worse still, February’s sales, which we were told last month had also fallen by 0.1%, were worse than originally accounted for, and have suffered a downward revision by the ABS to -0.2%.

Following the news, the Australian dollar has fallen again, unsurprisingly.

To name a few, the Australian dollar is now at 8-year lows against the Taiwan dollar (AUD/TWD 22.19 as of 04:30 GMT), 15-month lows against the rupee (AUD/INR 47.44), 8-month lows against the pound (AUD/GBP 0.5678), and 4-month lows against the US dollar (AUD/USD 0.7355). Against each of these currencies the Aussie has fallen between 5% and 10% in recent months.

Even against the Mexican peso – a currency battered by Trump’s wall, possible NAFTA breakup and slumping commodities prices – the Australian dollar is down nearly 16% since mid-January (AUD/MXN 14.13).

The continued slide in the value of the Australian dollar comes despite many financial markets feeling starved of volatility at present. The VIX index – frequently described as “Wall Street’s fear gauge” – fell yesterday to its lowest level since 1993. The index, which uses 30-day implied volatilities from options on US equities, now stands at 9.77.

 

The Best Way to Get Your Australian Dollars



AUD/USD 3 Month Chart

If you’re itching to get your hands on Australian dollars while they’re still cheap, consider using BestExchangeRates.com’s online comparison calculators for AUD travel money and AUD foreign currency transfers.

Our FX providers don’t inflate their margins like the retail banks or local Bureau de Change, and offer convenience to boot.

Consider that with today’s best value FX provider (World First), a payment of A$25,000 would cost someone in Europe only €17,001. That’s not only €700 less than they’d pay with a local bank, it’s also a saving of more than €1,500 on what they’d have paid as recently as mid-February.

 

 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
 
 

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