Sterling begun the month on the back-foot as I’ve covered in the Sterling section of my report, and one of the biggest benefactors of Sterling weakness has been the Australian Dollar, as the currency has been going from strength to strength in recent weeks.
The reasons behind the Aussies boost in value can be put down to commodity prices rallying, and in particular the value of iron ore which is actually Australia’s most lucrative commodity.
Oil has also seen a rise in prices as OPEC (The Organisation of the Petroleum Exporting Countries) plans to cut production which as buoyed the Aussie Dollar further, and a strong uptick in Inflation from 0.1% to 0.5% in the early hours of yesterday morning has kept AUD on track for further gains.
Over the past week, the Pound has lost almost 10 cents against the Aussie dollar due to the uncertainty surrounding the UK governments Brexit plans and permissions. I expect to see the GBP/AUD pair approach the 52 week lows in the late 1.50’s if Theresa May’s speech outlines a Hard Brexit bias as many fear.
Aside from Theresa May’s speech later this morning (11.45am) and the impending Supreme Court decision, I’m expecting Unemployment Figures out of Australia to be the key release for the GBP/AUD pair this week.
The figures will be released in the early hours of Wednesday morning, and will reflect the change in employment rates for Australia throughout last month. Analysts are expecting to see the Unemployment Rate remain at the 5.7% mark, but do expect to see movement within AUD exchange rates if the actual figure deviates from this level.
Get in touch with your dedicated broker early today if you have an Australian Dollar buying requirement. Theresa Mays Brexit speech could result in your requirement becoming more expensive. Call us on 01494 725 353 or email me here if youd like to learn more.
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.