Sterling has remained strong against the Australian Dollar over the last few days and I think the next movement will be following the release of US Non-farm Payroll data due out at 130pm UK time. The recent interest rate cut and 3.5 year high of the country’s trade deficit has seen the AUD weaken to its lowest level in a few weeks.
Last night’s FOMC minutes (US data) didn’t throw up any surprises so again the currency markets are holding their breath in anticipation of the next move. Indeed, the general consensus is that US interest rates will stay the same until 2015. The predictions for the non-farm payroll data this afternoon is for a creation of 113,000 new jobs so if we see an improvement we could see a sharp sell off from Australian Dollars as funds flow back into the safe haven of the US Dollar. If however we see less jobs we could see the GBPAUD exchange rate drop from its recent highs.
If you have a currency requirement coming up soon and want to find out more about transferring currency at commercial levels of exchange better than bank rates then feel free to contact me Tom Holian [email protected]
Coming this weekend there is a possibility that we might see a bailout for Spain which could lead to stability for the Euro zone and more risk appetite developing for the Australian Dollar. For up to date information contact me directly Tom Holian [email protected]