Australia released their latest Unemployment rate, participation rate and employment change numbers overnight. Forecasters were suggesting that the Unemployment rate numbers would rise to 5.1% and the participation rate and employment change numbers wouldn’t excite investors. However forecasters got this prediction wrong. Unemployment numbers remained at 5% and both participation rate and employment change numbers exceeded expectation, which gave the Australian dollar a boost against sterling of approximately 0.75%.

Currency Pair% Change in 30 daysDifference on £200,000
GBPAUD3.95%$14,980
Concerns over a slowdown in global trade and Chinese trade tariffs continue to handicap the AUD

Housing market remains a concern for Australia

The housing market is something for Australian dollar sellers to be aware of. This year Australian banks have found themselves tightening lending standards due to the advice from the Royal Commission in Australia. Previously banks were failing to adequately check people's incomes and spending patterns, and the banks now appear to be paying the price.

Reports are suggesting that further tightening of lending is just around the corner and UBS has warned this could crash the Australian housing market by 30%. Since 2014 house prices in Perth have dropped by 13% and the figures are similar in other major cities. The final report from the Banking Royal Commission is to be released in February.

If it’s the case that they stipulate that banks need to tighten lending standards further I expect this will have a major impact on the Australian dollar. For clients that may have a currency requirement in the longer term, the housing market dilemma has the potential to have a major impact on your currency exchange.

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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.