The recent strength seen for the Aussie against the Pound could slow down this week, if the inflation data from the UK comes out as positive on Friday we could see the Aussie weaken against Sterling. Today's Australian Dollar report discusses how external factors could impact the Aussie Dollar in the short term, as well as the speech delivered by Philip Lowe this morning. 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|
The Aussie has been experiencing a period of steady growth since the start of the year particularly against sterling, which has typically been put down to poor UK 1st quarter data and Brexit uncertainty.
It could be also argued that the AUD has recently benefitted from the political developments involving North Korea, which has helped ease geopolitical tensions in the far east which is the country’s main trade region.
Despite this, if there is to be positive UK inflation data or if the Fed decide to raise interest rates today, I would be inclined to think that this period of growth could slow, at least in the short term.
I feel its therefore possible that GBP AUD rates to be closer to the 1.75 levels we have seen earlier this month by the end of the week, given the sudden confidence in sterling that was experienced yesterday.
The RBA Governor Philip Lowe delivered a speech titled “Productivity, Wages and Prosperity” in the early hours of this morning at an Australian Industry Group event. His typical hawkish delivery has shown slight gains in the currency’s strength following his speeches in the past, so you could expect to see Aussie strength before the end of the week.
There will be further important unemployment data released tomorrow evening which is expected to show a reduction of 0.1% with a figure of 5.5%, which would show a reduction from last month.
The AUD could therefore experience movement either way this week, so it would be worth keeping in contact with your account manager here at Foreign Currency Direct if you are looking to make a trade soon. 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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