This Australian Dollar report will address the factors that could have an effect on GBP/AUD 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 at the low and high levels to date this year.
|Currency Pair||% Change||Difference on £200,000|
Those of our clients that took advantage of exchanging the Pound into Aussie Dollars at 1.7000 and above may be the last for a while, as the Aussie Dollar appears to be going from strength to strength and in some cases concerning economists.
At FCD we’re predominantly concerned with how the Aussie Dollar is performing against the Pound, but it’s worth comparing AUD with the US Dollar in order to gauge how the currency is performing globally.
The Aussie Dollar recently breached $0.78 for the first time in 2 years, and has since managed to hold onto these gains after good data from China boosted hopes for the global economy along with China’s key trading partners such as Australia.
The strengthening Aussie Dollar is a concern for the Reserve Bank of Australia, as it erodes the competitive advantage of Australian exporters over their rivals.
The RBA is also fearful of cutting interest rates again as this would likely result in another property boom which is something the RBA will be looking to avoid after all the concerns of an overheating property market down under, particularly on the East-coast of Australia.
This leads me to believe that the RBA will attempt to ‘Jawbone’ the currency, which is a slang term for talking down a currencies value. If you would like to be kept updated regarding any short term price movements do make us aware, and we can even arrange for automatic trades to take place in the early hours if clients wish to take advantage of short term favourable rate movements.
In the early hours of this morning the Aussie spiked by almost 2% against the Pound after investors piled into the AUD off the back of the RBA Minutes. Investors were caught off guard when an RBA official revealed that they now believe a cash rate of 3.5%, which is well above the current rate of 1.5%, would be a rate that wouldn’t impact the Australian economy in a positive or negative way. Many have viewed these comments as a hint at a future rate hike.
At 2.30am in the early hours of Thursday the Australian Unemployment rate along with the Employment Changes for the month of June will be released. The Unemployment rate is expected to show an increase to 5.6%, so expect any major deviations from this figure to result in AUD movement.
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.
My experience with Foreign Currency Direct has been excellent, and my account Manager Joseph Wright has been First Class. He has provided me with all the information that I needed, in a very clear way, that made it easy to understand.
Successful transfer to France. I have used Foreign Currency Direct several times. Nothing is too much trouble to explain, and when it comes to the actual transfer, it takes place on time without fuss. Never had a problem. Thank you Joseph!
Very efficient and responsive. We had great service from Joe Wright who helped us (patiently and with humour) through our currency purchase and was then able to guide us through the process of sending money to France for our property purchase.
Joseph treated us very professionally as well as friendly, and advised and went beyond his duty. Would recommend and use him again.