With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. This report will address the factors that are likely to affect an upcoming transfer of AUD in the coming weeks. The table below shows the difference in AUD you would have achieved when buying £200,000 during the high and low points over the past week.
|Currency Pair||% Change||Difference on £200,000|
Overnight we had the release of the RBA interest rate decision and monetary policy statement, which led to a little weakness for the Australian Dollar.
We saw no changes to the interest rate, which remained at a record low of 1.5% but the reason the Australian Dollar lost a little ground was due to the fact that the general tone was nowhere near as hawkish as many analysts had expected, with some predicting that we would be seeing an interest rate hike in the coming months in Australia those thoughts were quashed.
The general outlook on the economy within the statement was also not so bright, both of these factors led to a slight drop in value for the Australian Dollar, at the time of writing this report we have seen GBP/AUD rates creep above the 1.70 mark.
The rest of the week does lead us to a few releases of note. Overnight tonight we have Services data over in China, as many regular readers will be aware Chinese data can have quite a large impact on the value of the Australian Dollar due to the amount Australia exports out to China.
On Wednesday night we have Australian import, export and trade balance figures and on Friday U.S Non-Farm Payroll data which can impact all major currencies as it can alter global attitude to risk. With the Australian Dollar being perceived as a ‘riskier’ currency any alterations to risk approach by investors worldwide can impact the value of the Australian Dollar.
With so many important economic releases coming outside of our trading hours it would be sensible to consider a limit order.
A limit order is where you can put an order into the market to buy or sell at a specific price. It works 24 hours a day, 7 days a week and is really handy in volatile times such as these. If you wish to discuss this extremely handy contract type then feel free to contact us today on 01494 725353 or email me here and we will run you through the quick and simple process of having one set up.
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Would always recommend them. They have their fingers on the pulse and could not be more helpful. Have dealt with Daniel Wright every time who is polite, patient and charming.
We spoke with Daniel for only a few minutes and the funds were in our Spanish Bank Account later that day at the best exchange rate one could get on the day. We would never use anyone else to transfer our funds abroad.