The Australian Dollar has been performing well of late following a figures of 3.1% for growth, global factors such as the potential trade war between the US and China are still a cause for convern for the Aussie Dollar. Today's market report discusses how the potential fall in output caused by this could impact the Aussie Dollar. The table below shows the difference in AUD you could have achieved when buing £200,000.00 during the high and low points of the past month.

Currency Pair% ChangeDifference on £200,000
GBP/AUD4%AUD$13,390

Australian bank holiday limits gains for the Aussie

Australian Dollar movements were more muted than usual yesterday as Australia enjoyed a long bank holiday weekend, and therefore any fluctuations were prompted by political and economic events occurring elsewhere. The UK received a flurry of negative economic data including Manufacturing, worse than anticipated GDP (Gross Domestic Product) figures, along with a much wider than expected trade deficit, however GBP/AUD interbank exchange rates still managed to stay range bound between $1.755 and $1.759.

Although the Australian economy has been performing well of late, bolstered by far better than previous Growth figures released last week at 3.1% (to put this into perspective, UK GDP is currently at 0.1%), global factors continue to weigh heavily on the value of the Australian Dollar. Donald Trump’s threats of a trade war with China could prove to be catastrophic for the Australian economy as China is Australia’s largest trade partner. International Monetary Fund director Christine Lagarde spoke yesterday to say that the risks to the global economy are rising and that ‘the clouds on the horizon are getting darker by the day’.

Brexit also continues to keep the Aussie afloat while Sterling remains under pressure, however if positive developments emerge for the UK’s position, the Australian Dollar could suffer as investors move their funds back into the Pound. Today the next phase of Brexit debates will take place in the House of Commons, and if these talks go well we could see GBP/AUD back towards the $1.80 level.

Australian Dollar to strengthen owing to Brexit fears

Australian Home Loans figures released overnight

Last night home loans figures were released much better than the previous reading of -2.3%, at -1.4%, and the Australian Dollar has strengthened this morning against the Pound and Euro providing a good opportunity of selling AUD. In the early hours of tomorrow morning, Westpac will release their latest set of Consumer Confidence figures which will give an insight into the current sentiment of the Australian economy. This data has been less than impressive since the beginning of the year however, so if this figure is worse than the previous -0.6% we could see Aussie weakness.  Overnight on Thursday at 1.30am the Unemployment Rate for May is expected to fall slightly to 5.5% from 5.6%.

With so many political and economic factors to consider this week when transferring funds to or from Australian Dollars, detailing your requirements to your account Manager here could mean the difference of trading at the highest levels. Get in touch with us today to find out how. 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.