The Australian dollar has been one of the best investments for trading so far this year, with high interest rates and a strong performing economy we have seen the GBP/AUD rate dip into the 1.50’s. I feel that we could have seen this trend continue for AUD had it not been for Theresa May’s speech on her first plan for Britain since voting to leave the EU last June. Her speech yesterday helped Sterling to regain some of the ground we have seen the Australian Dollar make against the Pound, closing the session at 1.6416, a 2% gain over the course of the trading day.
To put this volatility realistically, clients trading at the high compared to the low yesterday would have been over $7000 AUD better off.
The interesting question now is whether we have seen a change in sentiment for Sterling following the speech, or whether this has been an instant reaction by the markets to May’s positive tone.
As I mentioned there is still a lot of events this week that have the capability of moving exchange rates. Today we have the Average earnings report for the released for the UK, which is expected to show slight improvement, however if this figure comes out worse than expected, inflation and rising prices could be a major concern for the UK and could cost the pound. This may help AUD seller recover some of their losses yesterday.
A worthwhile economic release for anyone looking at buying or selling AUD are the unemployment figures (employment change and unemployment rate) which are set to be released in the early hours of Monday morning. As this is out of trading hours and could cause major swings in the currency in question, it may be worth speaking to our team here about a limit order contract. Get in touch to find out more.
Australian Dollar buying requirementYesterdays spike in Sterlings favour may be short lived, you may be prudent to protect your position from further falls as we approach Article 50. Speak to one of our team on 01494 725 353 if youd like to discuss a transfer.
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