The GBP/AUD paring currently sits at the lower levels seen this year, but current rates are still at the better levels seen in the last 2 years. The AUD report below goes into further detail on how globa trade wars have been impacting the Aussie agsint the Pound. The table below displays the range of GBP/AUD exchange rates during the high and low points of the past week, showing the difference in return you could have achieved depending on when you sold £200,000.00.
The peaks earlier in the year between March and May, which saw the paring exceed 1.84, were largely attributed to the ongoing trade wars between the US and China, with China being Australia’s key trade partner.
China’s domestic investments are largely focused on developing physical infrastructure and Australia’s commodity exports such as iron ore and coal provide a key source for the raw materials required for such developments.
Indications of a potential slowdown in Chinese economic growth shown in the data realised last month add to concerns over the short term forecast for the Aussie, despite the positive employment data released last month.
The peaks earlier in the year between March and May, which saw the paring exceed 1.84, were largely attributed to the ongoing trade wars between the US and China, with China being Australia’s key trade partner.
China’s domestic investments are largely focused on developing physical infrastructure and Australia’s commodity exports such as iron ore and coal provide a key source for the raw materials required for such developments.
Indications of a potential slowdown in Chinese economic growth shown in the data realised last month add to concerns over the short term forecast for the Aussie, despite the positive employment data released last month.
The recent slump in the GBP/AUD pairing, resulting in a drop of around 10 cents since April, has also been influenced by UK domestic and international political frictions in addition to the Bank of England’s stance on interest rates.
CPI data release
The key data this week that could influence AUD movement with other currencies, will be results following inflation data, in the form of the Consumer price index (CPI) released on Wednesday.
Interest rates were kept on hold last month and the RBA Governor Philip Lowe has indicated that a hike is unlikely until 2019, but with the data expected to show a slight increase of 0.1%, it could suggest inflation is on the rise and could in turn provide reason for a potential hike later this year, so the Aussie could see some positive movement in the short term.
Clients planning transfers involving AUD could therefore see market movement in anticipation of the mid-week data, so it could be worth considering your position early in order to maximise on potential transfers.
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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