The US is due to implement an interest rate hike as early as this month, which could affect investor appetite for the Aussie Dollar. This Australian Dollar report discusses the way interest rate hikes outside of the AUD can have an affect on the currency. The table below shows the difference in AUD you could have achieved when buying £200,000.00 during the high and low points of the past 30 days.
|Currency Pair||% Change||Difference on £200,000|
Sterling has made some very positive gains vs the Australian Dollar since the start of the month and although we have seen a small fall over the last couple of days the general trend has been positive for GBPAUD exchange rates.
Despite struggling against both the Euro and the US Dollar the Pound has remained strong against the commodity based currencies including both the Australian Dollar and the New Zealand Dollar.
Australian GDP has recently fallen to 2.4% from 2.8% and this has caused investor confidence in the AUD to struggle. Indeed, with US President Donald Trump threatening to increase tariffs on steel and aluminium coming into the country this could have a detrimental effect on the Australian mining industry and therefore on the value of the AUD.
With the US also looking to increase interest rates in the next fortnight global investors are moving money away from more risky currencies in favour of the US Dollar. Over the years the difference between the Australian and the US interest rate was much higher but there is now no difference and the US is just about take over offering a higher yield.
With Australia celebrating Labour Day today the market could remain relatively quiet but things will kick off again tomorrow with the latest Westpac Consumer Confidence report closely followed by Chinese Retail Sales data on Wednesday morning.
As China is Australia’s largest trading partner this will often have a big effect on the value of the Australian Dollar. Both Retail Sales as well as Chinese Industrial Production data have been falling recently so another poor release could see GBPAUD exchange rates move in an upwards direction during the middle of this week.
Therefore, if you’re in the process of buying Australian Dollars then the middle of this week could provide you with the opportunity to possibly buy at better rates. If you’re in Australia then owing to the time difference it may be worth placing a Limit Order which allows you to buy at a pre-determined rate.
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.
As always, I got an excellent rate. Tom is always helpful and the whole process is extremely quick, efficient and simple.
Tom helped us so much explained every thing and got us a better rate to buy our home in Spain, when we had to pay for furniture went back again and he sorted a rate out for me.
Brilliant service, genuine advice and rapid transfer of money to our French bank account. Tom Holian seems like a friend although we’ve never met!