It looks like we could be in for an interesting end to the month for Australian Dollar exchange rates as the Aussie continues to wobble amid the troubled global trade scene, despite a consistent stream of positive economic data. The Australian Dollar report below goes looks at the other factors able to impact exchange rates, even in light of positive economic data released. The table below shows the difference in return you could have achieved when selling £200,000.00 during the high and low points of the past week.
|Currency Pair||% Change||Difference on £200,000|
We have seen the markets back the Aussie on numerous occasions since the start of July, with retail sales, consumer confidence and most notably last week’s outstanding employment data all providing plenty of punch for the Australian Dollar to capitalise on Sterling’s latest Brexit woes.
We have seen the Aussie sink the Pound by as much as 2% to hit the mid 1.75s recently but its inability to hold its ground and push on against Sterling, in similar fashion to its other currency counterparts, would worry me from an Aussie Dollar holder’s perspective.
Last night’s inflation data reflected the market’s lack of faith in the Aussie at present. Despite the Consumer Price Index release coming in 0.2% higher to finally hit the Reserve Bank of Australia’s target of 2% for the first time in around 12 months, GBPAUD remained relatively unmoved. Evidently the markets are still struggling to commit to the Aussie, as the Australian economy’s future remains clouded by the ongoing US-China tensions, with China being Australia’s main trading partner.
It will be interesting to see how tonight’s import/export data comes out. A slowdown for Q2 international trade data could further justify the caution around the Aussie and may offer an opportunity for AUD buyers to capitalise on.
As Brexit headlines in the UK begin to thin out and the Royal Bank of Australia continues to show caution with regards to changing their monetary policy anytime soon, I see very little reason for now for Sterling to retreat any further below the 1.76 mark in the near future, certainly an equation worth considering if you are looking to buy Pounds with AUD.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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