The Australian Dollar has made some gains against most currencies as reduced tensions on Trade Wars and of course, increased political uncertainty from the key political resignations of David Davis and Boris Johnson saw the Pound lower. The Australian Dollar report below goes into further detait on how Brexit uncertainy has assisted the Aussie. The table below shows the range of GBP AUD exchange rates over the past month and the difference you could have achieved when selling £200,000.00 during the high and low points.
|Currency Pair||% Change||Difference on £200,000|
We now have a very important week for Australian dollar exchange rates with some key releases from which could further impact the exchange rate. Overnight Chinese Consumer Price Index Inflation has been released which has seen month on month figures slip into deflationary territory at -0.1%. This is not good news but another measure, the Producer Price Index saw a rise to 4.5%.
The Chinese economy is of vital importance on the Australian dollar since Australian exports a large amount of raw materials to China, any positive news often helps the Australian dollar. This data opens up some fresh questions for the Reserve Bank of Australia about whether or not it is wise for the RBA to be considering raising interest rates in the longer term.
GBPAUD rates will now have a very busy week with further fallout from the UK political situation to be tracked. Any further escalation in the Trade Wars would also be important, Donald Trump is at a Nato meeting this week and also visits the UK. His comments can prove sensitive for the Australian Dollar.
Overall it would not be surprising for the GBPAUD level to ebb lower as the market has concerns about the future direction from the UK’s political situation. Having said that, investors do expect the UK will be raising interest rates ahead of the RBA which would push the Pound higher against the Australian currency. The rest of July will be very important for GBPAUD levels. Depending on the outcome of the UK’s political woes, the Pound might find favour against the Australian Dollar as markets price in a further UK hike.
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.
Contacted Jonathan M Watson following his advisory report on the BBC. He was clear, concise and took the time to completely understand my financial & personal position. It was my first time purchasing a chalet abroad and therefore understandably nervous about trusting someone I had never met with so much family money! Jonathan proved to be responsive to all my requests, telephoning immediately upon any query.
Service is always excellent. I have been a client of Jon Watson for many years and always feel that I receive a personal service. I have recommended them to many of my contacts and will continue to do so.
Service from Jonathan Watson was more than 100%, more than a pleasure to do business with, a gentleman of the highest order.