In recent weeks, the Australian economic outlook has looked bleak, which has caused the Australian dollar to weaken. Malcolm Turnball was axed as Prime Minister as polls suggested that his leadership meant that the Coalition was closing the gap against Labour and a change had to be made. The AUD report below discusses how current Australian economic uncertainty is impacting the Aussie, the range of exchange rates for the past 30 days is shown in the table, highlighting the importance of timing your transfer to maximise your return.
|Currency Pair||% Change||Difference on £200,000|
As we know, the currency markets do not like change due to the unknown and therefore the Australian dollar weakened on the back of the move. In addition, global interest rates are on the rise; however, Australian interest rates do not look like they will be hiked anytime soon. It was only last month the commentary coming from the Reserve Bank of Australia was that interest rates would remain on hold for the near future.
For a long period, GBPAUD exchange rates remained below 1.80 due to the weakness of the pound and in recent weeks, the demise of the Australian dollar coupled with the positive news surrounding Brexit has caused GBPAUD to remain buoyant above 1.80. This week UK Prime Minister Theresa May is in Austria giving further information to EU leaders in regards to the chequers plan. The talk on Thursday will be in a bid to win them over and for EU leaders to back Theresa May’s plan. Depending on how well Theresa May is received this week, will depend on the direction of the pound and consequently the direction of GBPAUD exchange rates. Personally, I do not expect EU officials to state that deal is on the horizon and the EU will keep their cards close to their chests for the time being.
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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