Posted January 18, 2010
As we came to the end of a year and got ready to start a new one, there was the question of how things would progress on the currency markets as well. Would the US dollar be able to finish on a good note and get a good rate on the currency converter when it came to the Australian dollar?
Let’s see what happened. On the first day of the month the US dollar kicked off with an exchange rate of 1.0951 against the Aussie dollar. But that dropped steadily throughout the first week and although there was a small fight back on the Friday, it didn’t stop the US dollar heading into the weekend on a disappointing 1.0790.
There was no need to worry on the 7th December though because this was when the US dollar started the next week in style. By the end of the day it had soared back up to 1.1003 and surpassed the rate it had started the month on. This dropped back to 1.0997 on the next day though, and it didn’t look as if it was going to be plain sailing from here on in.
But in fact it was very much that because the whole tone of the month changed halfway through. The 14th December – a Monday – started well when the exchange rate crept back up to 1.0972. But this was just the start of a very good week in which the US dollar really worked hard at improving its position. On the following day it went up still further to 1.1036 and after that it was all the ones - 1.1111 to be exact.
The highest point of the week was on the Thursday when the US dollar brought home an exchange rate of 1.1291. It slipped back ever so slightly to 1.1268 the following day, but this was enough to close out a very successful week for the US dollar. It didn’t seem as though the Aussie dollar could do very much at all to stave off this onslaught from America.
But would the month end as successfully for the US dollar as it had begun?
Christmas week kicked off with a better rate of 1.1282 in the bag, and this improved to a week long high of 1.1396 on the 23rd. Christmas Eve saw a dip in its performance though as the US dollar went into the Christmas break on 1.1316 Aussie dollars.
And unfortunately the shorter trading week between Christmas and New Year was not as good as it could have been either. The US dollar lost some ground during those last few days of the year and ended up finishing on New Year’s Eve on an exchange rate of 1.1112. This meant it had still gained a total of 0.0161 Aussie dollars, even with the loss of some of its gains during the central part of the month.
But will it be starting the New Year on an equal high?