Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
subscribe to our newsletter

Australian dollar facing ‘perfect storm’

The Australian dollar is likely to experience its most volatile month in over a decade, according to a foreign exchange firm.

World First currency specialist Ellis Taylor said Britain’s referendum on European Union (EU) membership and a possible increase in US interest rates are possible causes of a depreciation of the Australian dollar.

“Over the last month we have seen the volatility in the Australian dollar mount as the two crucial decisions build uncertainty in world markets,” he said.

Advertisement
Advertisement

The pairing of a US rate rise and a British departure from the EU could see the Australian dollar fall below 70 US cents, he said.

According to Mr Taylor, a rate rise in the US is likely to occur “over the next three months”, following improvement in the economy and job market and rising inflation.

Mr Taylor did, however, note that full time employment in Australia is reaching record highs and the price of crude oil is recovering, both working to keep the value of the Australian dollar high.

The likelihood of a Brexit is difficult to determine, but its potential impact on the financial services industry would be immense.

[Related: Australia headed for ‘growth upswing’]

Australian dollar facing ‘perfect storm’
mortgagebusiness

Latest News

The major has conceded that its AML/CTF compliance failures were partly due to “deficient financial crime processes, compounded by poor in...

AMP Bank has launched a range of technology enhancements to its home loan process, including digital pre-application, electronic signatures ...

The “mortgage-focused” model of the major banks will help them absorb an acceleration in fintech adoption in response to COVID-19, accor...

FROM THE WEB
podcast

LATEST PODCAST: Property remains a stable asset despite cautious market

Do you expect COVID-19 to reduce or increase your business flows?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.