The Aussie finished the week two cent above the mid-week lows yesterday trading against Sterling just below the 1.80 level. This week the GBP/AUD touched 1.795 at the highest point falling nearly three cents lower than that at the bottom of the market. The table below shows GBPAUD movement during the last month:

Currency Pair% ChangeDifference on £200,000
GBPAUD2.22%AUD $7806

The Australian Dollar has seen movement up and down this week as their main trading partner China comes under pressure from even more trade tariffs from the US.

There may be an argument to suggest that China might be forced to purchase products elsewhere that could help the Australian economy. However more likely is there may be less money to spend as they account for costs increasing.  The next few weeks the trade talks will continue which could add volatility to the Australian economy.

Could there be further rate cuts from the RBA?

Large amount of data next week

From the off next week there is data for the Australian Dollar as the Reserve Bank's latest meeting minutes will be released in the early hours of Tuesday morning. These will provide an indication into the thought of the central bank and how they see the economy performing for the rest of the year. There isn’t expected to be any changes to the Monetary Policy in Australia for a considerable time and any uncertainty surrounding global trade will only add to that pressure.

Later in the week the Participation and Unemployment rate will be released, with Unemployment forecasted to increase from 5.4% to 5.5% although minor they would rather it be going the other way.

There is certainly fears from Australia’s financial leaders with how the next few months will play out as protectionism continues to be a focus for the US. The AUD may start to move back above the 1.80 level against Sterling which we last saw 8 weeks ago in the middle of May.

If you do have an upcoming requirement make sure you’re speaking with your account manager here. We’re able to alert you to a movement in the market that could be a good time for you transfer.      

Read our monthly currency forecast

Download here


Read more articles
Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.