+43 (1) 253 084 05 81
  • Facebook
  • YouTube
AUD rebounds despite Greek woes
Published on 01.07.2015 14:28

The Australian dollar is holding ground today even though the Greek crisis, which sent markets tumbling worldwide, is threating to cause havoc in the financial world, which usually has investors flocking to the safety of the US dollar.

"(The local currency) held up well as stock markets were under pressure all around the globe," Westpac senior currency strategist Sean Callow said.

"The fact that it's rebounded now adds to the sense that at least short term it doesn't look as though investors have lost any real faith in the currency."

Also helping the local currency was the latest building approvals number which came in at 2,4% against expectations of 1% showing the recent cut in interest rates is adding more pressure on housing prices and further inflating the bubble.

The figure will play on RBA governor Glen Stevens mind as the central Bank meets next week to announce their latest interest rate decision with many analysts predicting that the only reason the RBA won’t cut rates further is out of fear of further inflating the property market.

OANDA Australia and Asia Pacific senior trader FX Stephen Innes said Greece was still the main topic with all eyes focused on Sunday’s referendum where the Greek prime minister is hoping for support from the local population to push through his agenda.

"Traders are now shifting focus to this weekend's referendum," Mr Innes said.

"While the proposal is still on the table, Germany has sent an unambiguous message that there will be no deal from them until Sunday's referendum." He added.

Andrew Masters


The power of leverage is the power of Forex.
Important notice
By clicking "Continue" you will be redirected to the website operated by FIBO Group Holdings Limited, a company registered in Cyprus and regulated by CySEC. Click "Cancel" to remain on this page.