This Australian Dollar report will address the factors that could have an effect on exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000.00 at the low and high levels during the past 30 days.

Currency Pair% ChangeDifference on £200,000
GBPAUD5%AUD $17,120

Increase in trade deficit weakens AUD

The AUD slumped in value against the Pound during yesterday’s trading on the back of a fall in exports in October coupled with a sizeable increase in their trade deficit figures. The report that was released yesterday attributed the rise in the deficit to a slump in iron ore prices, which is one of Australia’s largest exports, and the general fear over there is how dependant the economy is on its’s exports of iron ore, especially to China.

political shocks are turning into economic shocks

Rising debt poses a risk to China’s economy

There was further bad news for the Aussie late yesterday morning after the IMF released a report on the Chinese economy which highlighted rising levels of debt, currently at 234% of the country’s output, posed a great risk, whilst four-fifths of their banks were labelled ‘vulnerable’ following a stress test.

This is worrying news for the Aussie Dollar and the Australian economy as a whole, as they are heavily dependent on their exports of raw materials to China to prop up the economy. This news coupled with the RBA’s decision to keep rates on hold earlier this week with no rate hikes expected for another year has seen the Aussie weaken by over 2% against the Pound this week. 

In monetary terms that’s a saving of more than £2,500 on a $200,000 purchase. In fact, the US Federal Reserve are widely anticipated to raise rates at their interest rate decision next week to 1.5% which would match that of the RBA, but with the USD seen as a safe haven currency, we could see a flow of money out of the Aussie and in to the Dollar.

Early next week there are house price figures released on Tuesday morning and there are a number of reports surfacing that are predicting a fall in prices for the third quarter of this year. If that is the case in Tuesday’s official report, then we could see further losses for the Aussie. There is also expected to be a rise in the unemployment rate for November on Thursday and this could weaken the Aussie further and would also compound the RBA’s position not to raise interest rates for the foreseeable future.

For more information on how future data releases can have an affect on your currency transfer, please feel free to get in touch on 01494 725 353 or email 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.