This Australian Dollar report will address the factors that are likely to affect exchange rates in the coming weeks if you are buying abroad or making a currency transfer. The table below shows the difference in AUD you would have achieved when buying £200,000 during the high and low points of the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
The Pound vs the Australian Dollar has been flirting either side of 1.70 on the Interbank level as investors are not sure what is going on down under. Economic data has been mixed of late and but with the US economy showing consistent signs of improvement including a fantastic jobs report last week this helped to strengthen the Australian Dollar vs the Pound.
The Australian Dollar can be perceived as a riskier currency and as global attitude to risk increases this can often result in Australian Dollar strength. Therefore, with the US as the largest global economy the positive signs led to the Australian Dollar falling back below 1.70 vs the Pound.
Tomorrow morning there is a huge amount of Chinese economic data including Import, Export and Trade Balance data for the month of June. Chinese Trade Balance has been rising since March and if the data again confirms a strong figure then I think we could see the Australian Dollar strengthen vs the Pound which is not good for anyone looking to buy Australian Dollars with Sterling.
The property market remains buoyant in most parts of Australia with only Perth showing a fall year on year of 2.4%. Both Melbourne & Sydney have seen prices rise by 15.5% and 13.1% respectively.
The Reserve Bank of Australia have been rather muted in their rhetoric when it comes to discussing interest rates. The RBA appears stuck between a rock and hard place with household debt rising to record levels but a rate hike could be deemed necessary to slow down the housing bubble.
Owing to the time difference between the UK and Australia even though our trading lines are closed whilst an announcement is made it may be worth placing a Limit Order which allows you to set a pre-determined rate which is automatically triggered is we are able to buy at your desired rate. This is particular useful when markets can move quickly outside trading hours.
Thank you for reading my Australian Dollar report, if you have any questions about an upcoming transfer please don't hesitate to get in touch here.
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