The Australian Dollar has been under a lot of pressure vs the Pound in recent times hitting 1.80 since the start of the year but has managed to claw back some of its recent losses. However, the Australian Dollar has been slipping owing to concerns over a slowdown in the global economy.

Currency Pair% Change in 1 monthDifference on £200,000
Mixed Chinese Data causes movement for the Australian Dollar

Chinese exports and imports fell to their lowest level since the middle of 2016 as revealed by last month’s economic data, which has raised concerns about global demand.

The lower than expected data from China saw traders move away from the Australian Dollar in favour of the Japanese Yen as well as the US Dollar.

However, in the last couple of days reports are emerging that Chinese policymakers may be considering increasing further monetary stimulus in the first part of 2019, and if this is the case this could help the value of the Australian Dollar. As China is Australia’s largest trading partner, if things start to improve in the world’s second largest economy it could help the Australian Dollar to strengthen.

When will the Reserve Bank of Australia increase interest rates?

The RBA has been rather assertive in its stance in recent months that no change will be made to the current interest rate.

Interest rates have remained on hold for two and a half years, and the last rate change was a rate cut in summer 2016, and with the RBA last hiking rates 8 years ago the RBA does not appear to be ready to change interest rates any time soon.

On Thursday Australia will release the latest Consumer Inflation Expectations for January so if this comes out lower than the expected figures this could cause further headaches for the RBA. Therefore, if you’re in the process of moving Australian Dollars back to the UK it may be worth trying to get this organised in the near future.

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