With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The table below shows the difference in AUD you would have achieved when buying £200,000 during the past 30 days.

Currency Pair% ChangeDifference on £200,000
GBP/AUD5.2%$16,800
Will the Australian Dollar Weaken?rates near post Referendum high

Pound recovers losses against AUD

Since the beginning of May the Aussie Dollar has strengthened dramatically against the Pound, gaining by as much as 7.5% in value from its high compared to the low earlier this month. In monetary terms, a $200,000 purchase could have cost you as much as an extra £10,000 in recent weeks compared to just a few months ago. Overnight however, we have seen the Pound regain some of its losses against the AUD after Reserve Bank of Australia chief, Philip Lowe, defended lower interest rates in Australia for the time being and made it clear that there will be no rate hikes soon. One of the main reasons the Aussie Dollar has strengthened recently is due to the fact that their base rate is considerably higher than the Eurozone for example, and represents a more attractive proposition for investors.

Philip Lowe’s comments see AUD slide further

Philip Lowe’s comments came following Australia’s latest inflation figures which showed the prices of goods had fallen below the RBA’s minimum target of 2%. Lowe did say that he was committed to getting inflation back above their target level, and even hinted at the possibility of further monetary stimulus going forward which may have also lead to the Aussie’s losses.

As a result we have seen a good spike this morning for anyone buying AUD, which may be bolstered further if UK GDP figures this morning fall in line with expectations. Clients of ours can take advantage of this spike through the use of a forward contract, allowing you to lock in today’s price for months in advance by paying a small deposit.

Overnight we have import and export figures for Australia which could also create further volatility, whilst this evening’s interest rate decision in the US could also affect investor appetite to risk which may also impact on the Aussie.

Thank you for reading today’s Australian Dollar report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me here.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.