GBP/AUD exchange rates started yesterday in the 1.59s off the back of the news that the US had raised interest rates Wednesday evening. However the fight back begun when Kristen Forbes a member of the Monetary policy committee from the Bank of England surprised currency followers by voting in favour of hiking interest rates. GBP/AUD exchange rates improved from 1.5902 to 1.6129. For clients that purchased towards the top end of the market they would have saved as much as £1700 on a 200,000 Australian dollar purchase.
With GBP/AUD exchange rates falling into the 1.50s, surprisingly it’s actually been a fairly poor week for Australian economic data releases. Unemployment rate which is the number of unemployed workers divided by the total civilian workforce increased to 5.9% from 5.7% and employment change which is a measure of the change in employed people feel drastically to -6.4k, whereas the consensus expected was 16k. This shows it’s so important to be in touch with your account manager when trading as they will provide you with all of the factors that could impact your exchange rate, that you may not have been aware of.
As I have stated in the sterling section of this report many economists are split to whether the triggering of Article 50 will devalue or strengthen the pound. My personal opinion is that further falls are on the horizon for sterling exchange rates therefore I wouldn’t be surprised to see a fall into the 1.50s once more. For clients purchasing short term, buying upfront may provide the highest returns.
With limited data releases to look out for tomorrow for the Australian dollar all eyes turn to next week’s RBA minutes. The minutes are published two weeks after the interest rate decision and give good indication to future monetary policy decisions.
For more information on the data releases and other factors that could impact Australian Dollar exchange rates feel free to get in touch with the trading floor on 01494 725 353.
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