Concerns for the Australian economy continue to drive AUD lower. The Pound could make further headway against the Australian Dollar off the back of Super Thursday. The below table highlights GBP/AUD exchange rate movements year to date (YTD).
|Currency Pair||% Change||Difference on £200,000|
Yesterday alone the Pound gained by almost 1% against the Aussie Dollar, as Retail Sales data dominated the headlines between the pair.
As previously discussed in the Sterling section of the report the UK’s retail sales data hit its highest level since 2006 although the figures were slightly distorted due to the Easter bank holiday weekend and rising food prices.
At the same time Australian Retail sales data disappointed once again, decreasing the likelihood of an interest rate hike from the reserve Bank of Australia which has softened the Australian Dollar's value further. Retail sales down under contracted by 0.1% in March on a month by month basis, rather than rising by 0.3% as expected.
These signs of a consumer slowdown don’t bode well for the Aussie dollar moving forward, and I wouldn’t be surprised to see the GBP to AUD rate exceed 1.80 at one stage this year.
Being a commodity based currency the Australian Dollar as well as the Canadian Dollar, New Zealand Dollar and the South African Rand have dropped. The stand-out figures are as follows, in just the last week alone the price of oil and iron ore has fallen by 7%, along with copper (7%) and the price of gold which fell by 3%.
These drops are likely to negatively impact the Australian economy which is why we’ve seen currencies such as the Australian Dollar weaken in recent weeks.
If you’re planning a trade between the Pound and the Australian Dollar it’s worth getting in touch as depending on the direction of the trade, as there are options that our clients may not have considered so it can be worth a second opinion.
There’s no major economic updates regarding the Pound to Aussie exchange rate out this week, so for those monitoring the GBP/AUD exchange rate it’s worth following UK related data to try and plan around any big moves between the pair.
Thank you for reading my Australian Dollar report. If you have any questions relating to a currency transfer or would like more information on what's impacting exchange rates, feel free to call us on 01494 725353.
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