Great Performance From The Australian Dollar
It has been a good time for some currencies in particular lately. We all get so used to hearing about those currencies which are doing very badly – the beleaguered British pound for example – that we can sometimes overlook others. And yet the ones which do very well are just as thrilling to watch.
If you have had any interest in the Australian dollar for example, you may have been intrigued by the results your currency converter has been throwing back at you lately.
So let us take a closer look to find out how the Aussie dollar has stood up to the events of the last few months, and emerged thus far quite well off considering the circumstances!
You can read about the news that hit the headlines last month, during April, by visiting this link to the Exchange My Currency website. This illustrates the story we are relating here.
Let’s go back to the first day in April to see how this story can be tracked from there. If we compare the Aussie dollar to the Euro, we will soon see that it is the dollar which came out on top. Back on the first of April one Aussie dollar would have got you 0.5240 Euros. Not too bad you might think, but wait until you have the full picture and you know what kind of exchange rate you will end up looking at in just a few moments.
Things sprang up to 0.5320 the following day, before settling back to 0.5315 to close out the week. Things did drop back slightly for the Australian dollar for a day or two, but as it went into the long Easter break it was clear that it was the stronger of the two currencies. And that is why it managed to get to 0.5377 going into that break. It must have given everyone using or buying the Euro pause for thought.
And as we got underway again after the Easter break was over, we saw that the Aussie dollar picked up exactly where it had left off. It stormed ahead to close on 0.5488 on the first day back, and followed that up by closing out the week on 0.5517.
This was certainly a majestic performance and it didn’t look as if the Euro had much in return to defend itself with. But all currencies have their dark moments, and if the Aussie dollar was going to slip it looked as if the following week was going to be the one to do it in.
By the end of Monday’s trading the Euro had started to fight back and the dollar was left on 0.5438 at the end of the day. There was a bit of toing and froing during the week but eventually things ended with the Australian dollar on 0.5434, so not much ground was given away all in all.
The final day that we saw a figure in the 0.54 region was on the 29th April. That might sound like we are about to report the moment at which the Australian dollar finally gave up the strength it had previously found, but that was not to be the case. It had far more still left to give.
On the last day of April it finally got through that 0.55 barrier and managed to hit 0.5510, and by the time the week beginning the 4th May got started there was more to come. The dollar rounded off a great start to that week by ending on 0.5546.
There is often a pattern that dictates that smaller currencies get the better of the biggest ones in a recession. It doesn’t always happen that way but it seems to be the biggest currencies that become the most vulnerable ones – chiefly because everyone seems to be looking at them! They have the most to lose, and those currencies that are waiting in the wings, so to speak, can step in and make the most of their moment in the spotlight.
The question now is how long the spotlight will be shining in the direction of the Australian dollar. And since the Euro isn’t the only currency to have come off worst in its head to head with the Australian dollar, it may well have other currencies wondering how things will turn out as well.
So if you are interested in such things, keep an eye on the Aussie dollar in the days and weeks to come.
