The AUD has largely been on the decline against all major currencies since the beginning of June with current GBP/AUD rates at the better levels seen earlier this year in May around 1.79 and USD/AUD rates at the best they’ve been since May last year, at around 1.36. Today's Australian Dollar report goes into more detail about the reasoning behind this. The table below shows the range of GBP/AUD exchange rates during the last 24 hours as an indication of the difference in return you could have received when selling £200,000.00.
|Currency Pair||% Change||Difference on £200,000|
The lower than expected results of the Chinese Manufacturing PMI (Purchasing Managers Index) released on Monday, put further pressure on the currency with Mondays trading, ending with AUD almost 1 cent weaker than Sterling and half a cent weaker than the USD.
With China being the world’s second largest economy and Australia’s most dependent trading partner, showing fresh signs of a slowdown, it could be argued that this does not provide much confidence in the short-term strength of the AUD.
Yesterday saw the RBA keep interest rates on hold at a record 1.5%, but RBA governor Philip Lowe was upbeat surrounding the country’s economic stability, stating that “the recent data for the Australian economy, continued to be consistent with the Bank's central forecast for GDP growth”.
The bank has now held interest rates at that level for nearly 2 years, suggesting that this is due to below target levels of inflation and poor wage growth. Australia’s inflation has been below the 2-3% target for the best part of 6 years, which further decreases the likelihood of an interest rate hike anytime soon.
There are no major Australian economic data releases due later this week, so depending on the outcome of UK, US and European data, there is a good chance that the AUD could lose ground against some of its major currency partners before the end of the week.
Clients with AUD requirements should contact their account manager here at Foreign Currency Direct to discuss strategy, in order to maximise on potential transfers.
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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