After a poor start to the year, the Aussie has seen some improvement following the relaxation between the US and China about trade talks. The below report looks at the potential future movement for AUD and what could impact this. The table below shows the difference in Australian Dollars you could have achieved when buying £200,000.00 during the high and low points of the past week.
|Currency Pair||% Change||Difference on £200,000|
Lower than expected inflation and poor fourth quarter economic data has seen a tough start to the year for the AUD as markets went from expecting an interest rate hike early this year to suggestions of no change until as early 2019, but the last month has seen steady improvements.
There’s been key growth over the last week against all major currencies with most of the movement experienced over the last couple of days, since the announcement that US-China trade wars will be kept on hold.
It can also be said that the AUD has been benefitting from the weakening of other major currencies such as Sterling due to the obvious struggles with Brexit.
These points emphasise how strongly influenced the AUD can be by political events.
Although it’s a rather light week of economic data for the AUD, the key point for the week will be this afternoon as the RBA Governor Philip Lowe will deliver a speech on “Australia’s Deepening Economic Relationship with China: Opportunities and Risks” at the Australia-China Relations Institute in Sydney today.
The speech will be interesting considering the current global focus on US trade relations and Australia’s substantial economic dependence on China’s economic growth, development and access to Chinese trade markets.
As seen last month, a hawkish delivery by Lowe, could see positive gains for the AUD, so those looking to buy dollars should watch the markets closely.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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