Despite sterling’s gains against EUR and USD this month, it’s been a different story for its pairing with the AUD.
|Currency Pair||% Change in 1 month||Difference on £200,000|
Less than 1 month ago, the mid-market had GBP trading against the Aussie at the best levels since the UK referendum, with the highest levels briefly exceeding 1.87.
Since then the pairing has seen movement of over 7 cents, with current interbank levels just below at 1.80 for much of the year.
This is significant movement in such a short space of time, and in monetary terms transfers at the highest points could have achieved in excess of AUD$14,000 more than at the lowest points on a £200,000 transfer.
Australian dollar movement is typically influenced by Chinese economic development, since it’s the country's key trade partner. Lately the on-going trade battle between the US and the world’s second largest economy has had a knock-on effect on the Aussie’s strength.
With this in mind, it will be interesting to see whether the US mid-term results and changes to the Government's structure will have an effect on the approach going forward, as the US has recently been more bullish and arguably benefited as a result.
Recent Australian economic data has been a mixed bag to say the least; with inflation falling, GDP rising, and interest rates being kept at the same level since the latter part of 2016, at 1.5%.
This being said, the labour market has continued to perform well with unemployment currently at the lowest level since April 2012. With the latest sets of data to be released on Thursday, investors will be keeping an eye on the outcomes. Currently, unemployment is expected to show an increase of 0.1%, but this could be set to change and if the result shows an improvement on the previous, there could be further favourable movement for the Aussie going into the weekend.
Amazing Customer service. Great spot rates & reliable transfers
Excellent service and very efficient and easy process.
I have used Foreign Currency Direct for many years and always helpful, polite and good rates according to the market. Easy transactions and seamless service