Chinese Yuan To Trade With Australian Dollar
It has been announced that the Aussie Dollar (AUD) has become the third currency alongside the US Dollar (USD) and the Japanese Yen (JPY) to be able to trade directly with the Chinese Yuan. This comes as no major surprise as China is the biggest importer of Australian natural resources and so it makes economic sense that China are able to trade directly with the AUD. This news also illustrates China’s wishes to grow their economy and expand their global dominance, I would be surprised if we do not see more currencies start to be able to trade directly with China and as this happens we could well see the Chinese Yuan become one of the global reserve currencies which will reduce the dependence on the USD. This could mean that we could see the Dollar weaken slightly as less currency is traded into Dollars and instead sent to the Yuan. Therefore this news could have a large impact on the currency markets as the currency flow to the Yuan increases. So, if you need to make a currency transfer, or you business makes regular transfers abroad this news could be worth keeping your eye on.
UK Manufacturing Improves
Figures yesterday showed that UK industrial production figures rose by 0.8% in February which was more than expected and has helped reduced the chances of the UK falling into recession which has helped support Sterling exchange rates. Despite this news I still believe it will be a close run thing as to whether the UK will fall back into recession or not and as a result I don’t think we can breath a sigh of relief just yet. I also think that the markets are waiting to see what will happen with UK GDP figures before we will see any significant movement but we still cannot rule out Sterling movement in the run up to the announcement.
If you need to transfer money abroad and you are looking for great exchange rates make sure you speak with one of our experienced currency brokers here at Foreign Currency Direct plc so they can discuss your currency requirements and the options available to you. You can call straight through to our trading floor on 01494 725353 or alternatively you can email me on email@example.com.