In the early hours of the morning Australian Unemployment data revealed a drop of 0.1% in January from the previous month which was better than expected. There was also an increase of 13,500 thousand jobs which was 3,500 better than the expected 10,000. There was a slight rally for the Aussie following the news with the GBP/AUD rate dropping to1.61 for the first time in 1 month.
The Australian economy has been on an extraordinary run and could become a record breaker at the end of 2017. The annual survey of Australian Business Economists has revealed all members unanimously voted that the economy will continue to improve in 2017. What this does mean is that Australia is expected to surpass the Netherlands as the longest time without entering a recession; the record currently stands at 26.5 years.
The Aussie has enjoyed continued strength with relatively high interest rates in comparison to the rest of the developed world. Should there be continued good economic performance there will be an argument for a rate hike in Australia. However, unless there is an improvement in the current low levels of inflation it’s very unlikely.
The below table shows the difference in rates for GBP/AUD for the last week.
China last night revealed their investment figures which were significantly lower than this time last year. There was a 9.2% decrease in the amount of investment from foreign countries into Chinese businesses. Whilst this data may not have an adverse effect on the Aussie, a poor performing China as Australia’s largest trading partner could. If there was to be a trend of poor releases, I believe the AUD may start to lose ground.
To learn more on how Chinese economic data could impact your Australian Dollar requirement, speak to one of our experts on 01494 725 353.
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