The Australian Dollar fell during the early part of trading yesterday against the Pound despite better than expected Unemployment data released in the early hours of Thursday morning, which saw the rate falling to its lowest levels in almost 6 years. More on the global factors impacting the commodity currency in today's market report. The table below shows the range of exchange rates throughout the past month displaying the difference in AUD you could have achieved when selling £200,000.00 during the high and low points.
|Currency Pair||% Change||Difference on £200,000|
The Unemployment rate fell from 5.4% to 5.3% which was last seen in November 2012, however the economy lost 3.9k jobs rather than the 15k gain economists had expected in July. The good news however was that although 23k part time jobs had been lost, 19k full time jobs had been added.
Much like the UK, the Australian economy and consumers are struggling with poor wage growth figures, with the latest set of data released on Wednesday coming in below Treasury forecasts of 2.25% at just 2.1%.
However the Australian Dollar regained some of its losses against the Pound yesterday afternoon after the announcement that Qatar would be investing $15 billion into Turkey to help with its currency crisis. This was more due to Sterling weakness than Australian Dollar strength however, as investors moved their funds into the Euro following this news, causing the value of the Pound to fall. Commodity based currencies are avoided in times of global uncertainty. This positive news regarding Turkey and the boost for the Turkish Lira provided investors with the confidence to move their funds back into commodity based currencies such as the AUD.
In the early hours of this morning, Reserve Bank of Australia (RBA) Governor Philip Lowe gave a testimony to the Australian Parliament, where he confirmed that the next move by the RBA is likely to be an interest rate hike rather than a cut, but that he saw no real reason for any movement from the current lows of 1.5% in the short term. He did say that the economy was moving in a ‘good direction’ including impressive job creation, but that inflation still remains far lower than the bank’s target and that consumer debt is sky high, so improvement will need to be seen before any changes are made. The Aussie weakened this morning off the back of this speech and has provided another good opportunity for clients buying Australian Dollars to take advantage of.
Looking at the week ahead, early on Tuesday morning the RBA will release their minutes from their last Interest Rate decision meeting which took place two weeks ago. Although it has been made very clear that the RBA will not look to raise interest rates for the foreseeable future, most likely not until 2020 at the earliest, any further information on future monetary policy changes would likely cause movement for the Aussie. Get in touch with us today to allow us to help you to maximise any upcoming currency transfers involving the Australian Dollar.
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.
It was efficient, felt very secure with the checks made along the line and a very good rate of exchange.
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Very good. Very efficient. Excellent rate.