This Australian Dollar update examines factors that could affect AUD exchange rates this week. In the table below you’ll find high to low GBP/AUD exchange rate movement when exchanging £200,000 to Australian Dollars in the last 24 hours.
|Currency Pair||% Change||Difference on £200,000|
The Australian Dollar is now trading against Sterling at an 8 week high. The shift in exchange rates can be put down to Sterling weakness and also Australian Dollar strength. The Pound has been devaluing due to Theresa May failing to win a majority at the general election, the build up to Brexit negotiations and finally today Governor of the Bank of England Mark Carney’s comments that the Bank of England are not in the position to raise interest rates anytime soon. Off the back of Mark Carney’s statement the Pound plummeted against the Australian Dollar by a cent.
The Australian Dollar has been strengthening of the back of positive business sales growth, increased consumer spending and resilient GDP numbers even though the slowdown in China is continuing to have a negative impact on Australia’s largest export iron ore.
Furthermore the Governor of the Reserve Bank of Australia Philip Lowe, commented earlier in the week that the world economy is in a better shape than in previous years.
These comments by the Governor have raised speculation that the RBA could think about raising interest rates sometime within the next 12 months.
Looking further ahead, as long as China stay afloat I expect GBP/AUD exchange rates to continue to fall. For clients that are purchasing Australian Dollars for the first time it is important to understand how much of an impact a few weeks can have on your currency transfer. GBP/AUD exchange rates have fallen 5 1/2 cents in 13 days which means a 200,000 Australian Dollar purchase is now £3,850 more expensive.
For the next 10 days there are limited data releases for the Australian economy therefore all eyes turn to UK. With the UKs divorce settlement a hot topic this story could continue to put pressure on the Pound, therefore Australian Dollar buyers should get in touch with your currency trader to formulate a strategy.
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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