GBPAUD has hit levels not seen for 12 weeks, breaking 1.55. The rate hit a low of 1.4729 on the 7th August and since then has continued to weaken. This was all due to signs that there is a slowdown continuing in China and Japan, two of Australias main trading partners. Warnings followed these data releases that the Australian mining boom which has been one of the driving forces behind the AUD’s dominance in recent years would infact turn to recession.
Last night The Reserve Bank of Australia kept Australian Interest Rates on hold as expected and we have seen no significant change in their current policy. There is talk of further rate cuts later this year, but even so, with rates having been cut significantly in the last year, the Aussie retains much of its strength. Whilst quite clearly there has been a change in the mood on the rate I expect longer term the Aussie will retain much of its strength.
In the shorter term we can look to economic data on the horizon, notably Australian GDP due early tomorrow morning UK time at 01.30. The expectation is for Aussie growth data to show a slowdown which of course will affect the rate. I would not therefore be suprised to see the Aussie lose a bit more ground before the end of the week. Clients buying Aussies may wish to hold out a little longer just to see what happens overnight.
The Australian Dollar is affected massively by a wide range of factors. An understanding of what moves the market and why is key to understanding where it may go. As a Senior specialist currency broker for one of the UK’s largest currency brokerages I can assist with all the tools necessary to secure the very best rates of exchange.
For further information on the rate please feel free to speak directly with me Jonathan Watson on [email protected] or call 01494 787 478.
I look forward to hearing from you