Currently, we are seeing some weakness in the Australian dollar.
The stock market’s volatility have assisted fluctuations. When there is increased risk, investors pull out of commodity currencies such as the Aussie dollar - over the past 2 months, the Aussie dollar has struggled when the stock market has been adversely affected (particularly in early August and again now).
Typically investors sell high yielding assets when there is fear concerning the markets hence why the GBP/AUD exchange rate has improved for Aussie dollar buyers.
With worries remaining over Greece, and many of the Eurozone's economies, until a solid plan of action is formulated we are likely to continue to see dollar weakness, with the pound caught somewhere in the middle, although volatility will probably be the only real constant.
Last edited: Sep 26, 2011