During the first few weeks of 2013 the global economy has seen signs of improvement starting with mainland Europe. With Spanish and Italian bond auctions now seemingly under control which were both big causes for worry confidence in Europe has now begun to return. GBPEUR exchange rates are the lowest since December 2011 and GBPAUD exchange rates have hit below 1.50 during this month. If global confidence is up this often strengthens the Aussie Dollar as investors are inclined to have more risk appetite and place money into Australia for higher yields.
Chinese manufacturing activity has hit its highest level in over 2 years after having a mild slowdown during the third quarter of 2013. HSBC data release for Chinese PMI showed the data increasing to 51.9 compared to 51.5 in December. Anything above signals growth. As Europe and the US shows signs of growth themselves this could have a positive impact for China and have the knock on effect of strengthening the Australian Dollar exchange rate. Economic growth also showed China grew by 7.9% during the third quarter of 2012. The Australian Dollar is heavily reliant on the export of raw materials predominantly to China. Manufacturing is a key sector and a positive figure is a good indication of how the economy is faring.
Tomorrow sees the release of UK GDP figures due out at 930am so if you have a currency requirement to make coming up soon and want to find out how to save money when transferring Australian Dollars please do not hesitate to contact me. Tom Holian [email protected]
If you have any questions or thoughts of what you think may happen to Australian Dollar exchange rates then feel free to contact me.