This Australian Dollar report will address the factors that could have an effect on exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved in AUD when purchasing £200,000.00 at the low and high levels during the past month.
|Currency Pair||% Change||Difference on £200,000|
GBPAUD rates are now near the best levels seen for a year. The majority of these gains have come from the UK and talk about the pending Brexit deal being concluded before next week’s Brexit conference. Saying that however data within Australia has also been fairly positive. Optimism about the future of the construction sector in Australia was boosted when a senior economist at Commonwealth Bank was very optimistic. A number of the banks across Australia have also started to predict two further rate hikes in Australia next year from the current 1.5%.
The Reserve Bank of Australia (RBA) has left the official cash rate at 1.5% at last night’s meeting. This means the rate has remained unchanged for 16 months and the entirety of 2017. They did note that wage growth was not really improving and inflation remains below the 2% target. They warned that household income was growing at a slower pace than domestic debt levels suggesting that a bubble may be continuing to build.
The commentary by the RBA continued to add to the speculation that rates could climb in early 2018 which has resulted in some gains for the AUD this morning making it more expensive to buy.
Later this week we have the latest GDP data from Australia which is expected to show another improvement from 1.8% up to 3%. Construction data is due on Thursday along with Trade data, finishing with investment figures and home loans. Generally most of these releases are expected to show improvements for the Australian Dollar which could result in the Australian dollar becoming more expensive to buy.
If however you are considering buying the AUD with GBP watch out for Brexit negotiation updates as I expect this to overshadow the economic data from Australia.
If you are considering buying AUD with GBP I would expect you to get more for your money at the end of the week. If you are trading the Dollar with another currency I would expect the better levels to be at the beginning of the week.
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.