This Australian Dollar report will address the factors that are likely to affect exchange rates in the coming weeks if you are buying abroad or making a currency transfer. The table below shows the difference in AUD you would have achieved when buying £200,000 over the past week.
|Currency Pair||% Change||Difference on £200,000|
The RBA warned last night that they feel the construction sector in Australia is starting to slow down, which could lead to the loss of tens of thousands of jobs should this continue.
There has recently been a forecast by BIS Oxford economics of a 31% fall in the number of dwellings being built over the next three years. This drop would be the worst seen since the mid-1990s and although gradual may start to hurt the Australian economy over the next few years.
Another comment from the RBA surrounded household debt, which has now hit a record high of 190% of household income which is a major worry too.
It is due to having to balance these risks that interest rates have remained on hold and may well do for a reasonable period of time now, which led to a slight drop in the value of the Australian Dollar.
Outside of trading hours at 02:30am we have the release of Australian unemployment figures, with expectations of levels to remain at 5.6%.
Australian unemployment has remained fairly steady over the past year with levels remaining between 5.6%-5.9% so should we see a release of 5.6% I would not expect any major movements.
Should however the unemployment rate for Australia finally break out of this range and come out as 5.5% for instance then we may see some Australian Dollar strength overnight and come in to a lower GBP/AUD rate when we enter the trading floor on Thursday morning.
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 and we will run you through the quick and simple process of having one set up.
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