This Australian Dollar report will address the factors that could have an effect on 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 the past week.
|Currency Pair||% Change||Difference on £200,000|
Despite a number of issues surrounding the UK economy at the moment, along with Brexit uncertainties and even speculation regarding the Prime Minister's position, the Pound is still trading within just a few cents off its annualised high against the Aussie Dollar. Since the Brexit vote the Pound to Aussie Dollar exchange rate has spent most of the time below 1.70, yet in this time of uncertainty for the UK the Pound is performing well against AUD owing mostly to what I believe is Australian Dollar weakness. The weakest Retail Sales figures in 4 years down under were released recently, and this appears to have stuck in investors’ minds. The Reserve Bank of Australia also quelled hopes of further interest rate hikes after assuring markets that interest rates are unlikely to rise for some time.
I think that 1.70 will act as a psychological support level for some time now although should that level be breached I wouldn’t be surprised to see the rate dip into the mid 1.60’s again but this would mostly be down to GBP weakness.
AUD has got off to a bad start this morning after poor wage growth figures were posted in the early hours.
Following on from this data release in the early hours of Thursday there will be the release of Employment Changes down under. The unemployment rate is expected to rise to 5.6% and I think that if the figures exceeds this mark we could see the pound test its recent highs of 1.74.
Due to this release coming out outside of market hours do feel free to get in touch with us during business hours today, as depending on the size of your transfer we can set up automatic trades to take place should your target rate become available. This trade contract is called a Limit Order, and I’ll be happy to discuss it in more detail should you wish to. To get in touch, call us on 01494 725 353 or email me here.