After breaking through 1.80 earlier this month it appeared as though the Pound was set for a bright future in despite of the current Brexit talks. The Trade Wars between the US and China have weakened the Australian Dollar vs the Pound as China is Australia’s largest trading partner. More on Trump's tariffs and their impact in the AUD report below, with the table showing the range of exchange rates for the past 30 days and the difference in potential return when selling £200,000.
|Currency Pair||% Change||Difference on £200,000|
The Australian Dollar has started to fight back against the Pound after the Trump administration decided not to impose any tariffs on Australian steel and aluminium exports, which provided the Australian economy with a huge relief.
The Australian Dollar was also given a boost after credit ratings agency S&P upgraded the Australian economy from negative to stable for the first time since 2016, after a few months of uncertainty caused by the Coalition Government and the change in leadership a few weeks ago.
The reasons for the change were the return to surplus for the economy down under, as well as record employment figures and better control of the budget by the Australian Government. The country is now just one of ten countries that has a credit ratings outlook of AAA by S&P, Moody’s and Fitch.
However, the credit ratings agency did go on to suggest that the Government should be prepared for a potential crash in the Australian property market, and make sure they put away money if they need to provide the economy with some support. Indeed, during the last year house prices has fallen by 5.6% in Sydney and 1.7% in Melbourne.
The Pound has fallen in value against the Australian Dollar by over 3 cents during last week, or by £1,820 on a currency transfer of AUD$200,000.
Overall, I expect to see the Australian Dollar continuing to improve during the course of the week, so if you’re considering buying Australian Dollars it may be worth getting them organised early this week.
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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