On Thursday China will release a host of data that may have an impact on the movement of AUD exchange rates in the short-term. The Australian economy is heavily reliant on Chinese demand for raw materials which has seen the Aussie go from strength to strength in the last few years. Having strengthened by 40% against Sterling since 2008 as the Chinese economy continues to grow this is fuelling the strength behind the Australian Dollar.
In recent months growth in the global economy has slowed and therefore demand from China has also slowed. Indeed, Chinese GDP was recently measured at 7.6% lower than its been for this year. However, interestingly enough China has grown by an average of 10% over the last 30 years. If Chinese GDP figures on Thursday show a slowdown we could see an improvement for individuals looking to buy Australian Dollars.
An interesting data release came out this week as Chinese demand for Australian wine has hugely increased. Bottled wine sent to China has grown by 23.1% in value and 16.3% in volume. Mining in Australia will clearly be a key driver behind the strength of the Australian Dollar and if China continues to remain robust we could see GBPAUD exchange rates here for a while.
My Australian Dollar forecast for Thursday is to see 1.5780 n mid-market for GBPAUD exchange rates.
Let me know what you think by emailing me directly Tom Holian [email protected]