This Australian Dollar report will address the factors that could have an effect on AUD exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000.00 at the low and high levels during trading hours on Thursday.
|Currency Pair||% Change||Difference on £200,000|
It was not long ago we saw the worst fall in Australian Retail sales in four years, which caused the Aussie to lose significant ground. The recent Retail sales data came as a surprise going substantially against expectations of 0.4%. They came in at 1.2% and the Australian Dollar gained as a result.
Consumer spending has been a major concern due to inflated house prices and living costs. There is a housing bubble in the major, high wage growth cities such as Melbourne and Sydney. Foreign investors are willing to pay inflated prices for property which is causing natives to struggle financially. They are forced to spend their hard earned money on necessities rather than luxury goods.
Last month was the exception however, it seems everyone’s obsession with Apple was a good enough reason to part with their hard earned cash. The rise to 1.2% could well be an anomaly and can be attributed to the release of the iPhone 10 and a Black Friday sales frenzy. I would be wary of thinking retail Sales will be similar next month, in fact I think we will see a sharp decline.
If we look at GBP/AUD, we saw a recent rise to Sterling to 1.79. If you are selling the Australian Dollar and current rates sit at 1.72 I am of the opinion it is a favourable time to make your trade.
Australia’s November unemployment rate came in at an impressive 5.4%. The lowest since February 2013. The economy added 61,600 jobs while the unemployed rose to 4,100.
A run such as this is no small feat, and according to estimates this run could well continue this month.
Unemployment data is released during the early hours next Thursday and could be a key market mover. Pour yourself a coffee and keep your eyes peeled if you wish to take advantage of any spike, or alternatively speak to your broker and place a limit order at your target rate of exchange and let us do the work for you.
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