Strong Aussie Dollar buoys importers and expats sending money home By Dale Streten – Head of Corporate Partnerships, Send
MARKET COMMENTARY
The AUD has demonstrated considerable strength and traded solidly in an ascending channel. Currency exchange specialist Send has seen increased activity with Australians repatriating money to locations such as New Zealand, the US, and UK. Its data indicates this is driven by expats returning home (many as a result of the COVID-19 pandemic), offshore property purchases (from buyers taking advantage of slightly reduced property prices), and those providing financial assistance to family members. To give an example of the significant differences over a short period of time, an Australian sending $100,000 worth of AUD to NZD received approximately 8800 more NZD at the start of September when compared to mid-March. Likewise, an Australian importer paying an invoice for USD100,000 would have been a whopping A$38,000 better off in the same timeframe.
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Broker Magazine
AUD/USD
The AUD is likely to be in a period of consolidation, and where .7000 was a prior milestone resistance level, this may transform into a key support level. The main driver has been commodity prices, with iron ore holding an average of above USD100 per tonne since the start of June,
