During the opening session of the year I was expecting to see GBPAUD rates hit 2 and perhaps even fall below the support level as the Australian Dollar strengthened following the RBA’s announcement to keep interest rates on hold. However, with the Chinese stock market having had the worst start to a year on record we have already seen 7 cent gains for Sterling. Over the weekend China posted a fall in inflation, which is likely to result in further AUD weakness, and I would not be surprised to see GBP/AUD exchange rates hit 2.10 early in the week.
Chinese Trade Balance data is published on Wednesday as well as Import & Export data and this could create excellent opportunities to anyone needing to buy Australian Dollars. However, one factor that could see some respite for the AUD is unemployment data due out on Thursday morning. The labour market down under has been strong of late so any signs of growth could see a brief fight back.
To learn more about the issues affecting the Australian Dollar please feel free to call me on 0044 1494 725353 or email me directly at email@example.com.