Following a very positive data release overnight from China, Australia's largest trading partner overnight, AUD. Unemployment data released next week for Australia will play a key part in the RBA's monetary policy decisions. This report discusses how internal and external factors can impact Aussie exchange rates. The table below shows the difference in AUD you could have achieved when buying £200,000.00 during the high and low points of the past month.

Currency Pair% ChangeDifference on £200,000
GBPAUD3.35%$13,160 AUD

Australian dollar stronger on good Chinese data

Overnight there has been some important Chinese economic data being released which has seen some developments on GBPAUD exchange rates. China’s Trade surplus came in much greater than expected at $326.1 bn versus the $179 bn expected. This just shows the strength of the Chinese economy and as Australia’s largest trading partner has given the Australian dollar a boost.

Despite this, GBPAUD rates remain right at the top of the recent ranges, we are exceptionally close to the best rates to buy Australian dollars with pounds since the Referendum in June 2016.

Whilst there is limited further information today next week sees key news on the Australian dollar with the RBA meeting Minutes. The Reserve Bank of Australia are currently debating the possibility of raising interest rates and whilst no firm dates are set, the next move does seem to be higher.

Pressure on the pound and the Australian dollar

Will the RBA raise interest rates?

The RBA are predicted to be raising interest rates in the future with the current 1.5% the same it has been since 2016 which is a record breaker for the length of time it has gone unchanged. A key concern is the level of household debt, the RBA are very cautious about raising rates and putting consumer in a more difficult position to pay back what is owed, and thereby trigger a greater problem.

GBPAUD is at a very important junction now, further GBP strength and progress could easily see us open fresh ranges up towards the 1.90 level. Meanwhile any surprise strong economic data might lend support to the case for the RBA to hike. The overnight data from China could if it continues further support the case for an RBA hike in the future.

Next week is some key economic news for the Aussie with the latest Unemployment data Thursday which is central to the RBA’s assessments. Early Tuesday morning also sees key news from China again with Retail Sales and GDP data, if you are looking to buy Australian Dollars these releases could easily upset the current trend.

With plenty of global issues including Syria and Trade Wars potentially influencing the Australian dollar, why not make sure you are fully up to date with our team here to learn of the latest news. Buying 200,000 AUD today is £15,700 less costly than the lows in 2016, Aussie buyers are in a very good position.

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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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.