The trend that we have been warning of on the Aussie continued today with the pound touching a 5 month high against the Australian dollar. Will this continue?
Well I would expect that yes it will, particularly with Retail Sales tomorrow at 09.30 for the UK which is expected to show an improvement on February’s dismal numbers. Retail Sales is a major contibutor to GDP in the UK so this could move the pound depending on how the figures come in.
The real reason for the recent movement we have seen is a shift in attitudes to risk. The pound’s change of fortune is what boosted the rate this week but risk appetite is why we are now nearly 10 cents higher than the 1.4670 low posted only a few weeks ago… It has caused investors to flee the Aussie…
With the eurozone crisis back in the headlines and China’s GDP the lowest it has been in 3 years, investors have every reason to be concerned. I would not expect a massive sell off too soon, but investors are perched waiting to see how things pan out with Spain in the short term.
If looking to make any Aussie trades we can help make you aware of all the events moving your rate. There is a lot of data coming out soon that could see this pairing shift by a good few cents, that could cost anyone buying or selling Aussie dollars a lot of money if not managed properly. Examples include UK GDP, the prospect of a RBA rate cut and the continued uncertainty over the European and Chinese economic outlooks.
To have a free no obligation discussion about all the issues affecting your rate, and personal assistance with actually getting the very best price, why not speak to me direct on [email protected] or call 01494 787 478.
We are based in the UK but can help clients all over the world and offer our support on non sterling trades too. i.e EURAUD, USDAUD etc. Speak to me to find out more!