This AUD report looks at the cost of converting Australian Dollars this week and factors that could affect your Australian Dollar transfer. The table below shows GBP/AUD movement in the last week:
|Currency Pair||% Change||Difference on £200,000|
Overnight we saw the release of unemployment figures in Australia and much like the U.K they came in better than expectations, leading to a small spike in the value of the Australian Dollar late last night.
Expectations were for the unemployment level to be at 5.9% however we saw an official release of 5.7% suggesting that in terms of employment things are looking better over in Australia, however other economic figures still are not fully following suit.
In my view this all hinges on a couple of factors. First and foremost, one of the key drivers will be what happens with Australian interest rates. As it stands there appears to be no imminent plan to cut interest rates in Australia but I would not be surprised to see the possibility of it happening increase in the coming months as the economy over there is starting to drop off a little.
On top of this, we are seeing interest rates in America starting to creep up, and as they get closer to U.S interest rates investors will start to shift money out of the ‘riskier’ Australian Dollar and into the so called ‘safer haven’ of the USD. With this flow happening you may well see the Australian Dollar get weaker and cheaper to buy.
Thirdly, Donald Trump’s actions are leading to a global sell off of riskier assets and currencies as global attitude to risk is deteriorating, so this is where you start to see currencies such as the AUD lose value.
With all of this in mind I would not be overly surprised to see the rates creep up close to the 1.80 mark in the coming weeks but do be cautious, as the GBP/AUD rate does tend to move in trends and it also can move fairly sharply and overnight too.
It may be prudent to consider a limit order if you have a pending requirement to buy or sell Australian Dollars in the near future, as these work 24 hours a day and mean that your currency may be bought out for you whilst you catch your beauty sleep.
For more information on limit orders visit out contract options page or call us on 01494 725353 and we will be happy to explain this handy market tool to you.
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.
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