Key UK data will be released next week, including Retail Sales and Inflation which could impact GBP/AUD rates in the short term. The AUD report below discusses the way this could impact exchange rates in the coming weeks. The table below shows the difference in Australian Dollars you could have achieved when buying £200,000.00 at the high and low points during the past week.
|Currency Pair||% Change||Difference on £200,000|
Overnight we have had Unemployment data which is the breaking news on the Australian dollar. Despite a slight increase in Unemployment to 5.6% from the previous 5.5%, there was a higher participation rate at 65.6% instead of 65.5%.
These results effectively cancel each other out but are important for the longer term projections on Australian dollar exchange rates. The Australian dollar has hit some better rates lately as the market begins to expect an interest rate hike in the future.
Overnight Consumer Inflation expectations were also released which reflected a higher level, this might give the RBA (Reserve Bank of Australia) more food for thought in their decision making process. With such mixed messages in I think the RBA will be forced to hold their current position for the time being as we await further evidence a hike is necessary.
Since the UK Bank of England decision the rate has dropped below 1.80 and has been gently flirting with a rise back higher. An important series of economic data releases will come next week for the UK including Inflation and Retail Sales. If you have a transfer to consider making plans in advance is worthwhile.
I feel that with continued uncertainty over Brexit and the Bank of England unlikely to be hiking anytime soon the GBPAUD pairing is more likely to now remain below 1.80, particularly as the general impression is for the RBA to begin hiking at some stage in 2019.
If you wish to buy Australian dollars above 1.80 or higher a Limit order is the perfect way to manage trading at the higher levels as it guarantees a price for you once it is hit.
Please speak to your account manager about all of your options when moving funds internationally to get the latest news and information.
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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