Getting the best exchange rate can be achieved by understanding what is driving rates and the service of a specialist currency broker. Below are movements in just a month affecting Pound Sterling rates when buying £200,000:
|Currency Pair||% Change||Difference on £200,000|
The Australian Dollar suffered heavily overnight against all of its major currency counterparts, as overnight saw the release of the worst Retail Sales figures seen in 4 and a half years. The expectation was for an increase of 0.3% in August, however data showed a drop of 0.6%, as consumers cut back on items such as food, clothing and furniture. July’s reading was also revised down, meaning a 0.8% fall in just 2 months, which is the largest back to back drop since 2010.
Earlier this week the Reserve Bank of Australia decided to keep interest rates on hold at 1.5% as expected, one of the reasons for keeping these rates on hold was the fact that consumers are already faced with household debt at record highs, Inflation remains weak and wage growth is slow.
However Trade Surplus figures were a little more positive, showing a jump to $989million, over $100k better than expectations. Imports were lower, in line with low Retail Sales, but Exports grew by 0.5% which was mainly led by a large rise in the value of Iron Ore, Australia’s largest earning export. This is because demand has been high from China, and efforts from Beijing of shutting down some of the higher polluting steel production factories has allowed Australia’s cleaner production of Iron Ore to thrive.
However, this wasn’t enough to help the Aussie to recover any of its losses, and this news overnight has provided our clients looking to buy Australian Dollars with another great opportunity to take advantage of.
Australian economic data is now light for the remainder of this week, so GBP/AUD rates will likely be driven by the UK and the possibility of an Interest Hike in the near future. Chief Economist at the Bank of England will be speaking tomorrow and if any further suggestions are made about raising rates, buying Pounds with Australian Dollars could get more expensive as we end the week. I would greatly appreciate any feedback you have and would take pleasure in replying personally to any queries you have. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me at firstname.lastname@example.org