Governor of the Reserve Bank of Australia, Philip Lowe will deliver a speech this week, and indications of future interest rate hikes would be helpful for AUD. The table below shows the difference in AUD you could have achieved when buying £200,000.00 during the high and low points of the past week.
|Currency Pair||% Change||Difference on £200,000|
Having finished last week on 1.7927 a positive outlook this week could see the pound and AUD going toe to toe to see which of the pair will come out on top of the other.
Wage growth is fast becoming a pressing issue for the Australian dollar. A lack of growth limits household spending which accounts for roughly half of the economy’s value.
There have been calls to increase the minimum wage or at the very least job seekers’ payments which haven’t risen in over a quarter of a century.
With the prime minister resisting raises encouraging those in need to seek employment, it is likely that household spending figures will affect the AUD in the near future.
The Australian Dollar will kick off the week ahead with the release of construction work done for quarter one on Wednesday. After the disappointing previous release -19.4% last quarter, all eyes will be peeled for signs of a come back but further decreases may be a burden on the AUD.
The most major event for the currency will come on Wednesday and will be a speech from Reserve Bank of Australia (RBA) Governor Lowe. Any indication of future interest rate hikes here would stand the AUD in good stead.
The Australian dollar has been performing well lately as better data has rolled in increasing the likelihood of a rate hike. Whilst currently the jury is still out Governor Lowe’s words should shed some light on the RBA’s stance.
There were previous concerns that the AUD would suffer following the trade war with between the US and China. With the matter settled for the time being the RBA can return their attention to issues nearer to home. This will likely be reflected in Governor Lowe’s attitude on Wednesday.
With the abundance of data being released this week for the GBP it could be feasible that the pound sees a rise back to the power it previously showed in March. However, with both parties showing ever changing views on interest rates it is all still to play for on both sides. Depending on appetite for risk those on both sides of an GBPAUD exchange may benefit from watching this week’s developments. I would recommend contacting your account manager to keep up to date on the week’s events.
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.
Amazing Customer service. Great spot rates & reliable transfers
Excellent service and very efficient and easy process.
I have used Foreign Currency Direct for many years and always helpful, polite and good rates according to the market. Easy transactions and seamless service