GDP estimates this afternoon could be key for short term GBP/AUD movement

Australian Dollar Looking Bullish

Recently the Australian dollar has continued its ascent against the pound moving close to record highs, nearly breaching the 1.45 barrier. Today we have a number of data releases which if positive could give the pound a shot in the arm. At 09:30 we have industrial and manufacturing figures from the UK. These have been very negative of late and any improvement could give the pound a much needed boost, however should this negative trend continue then watch for further sterling weakness. This mornings data is followed by UK GDP estimates at 15:00. These figures will be eagerly anticipated to see if the UK is on path to escape the triple dip recession.

For me this is key to the short term trends for the pound. We have a central bank that have openly talked down the value of sterling an a last ditch attempt to claw the UK out of recession and figures are suggesting this could be a very close call. If official GDP data from Q1 is at 0% or better then recession has been avoided and I a long overdue correction for the pound could be seen. Anyone buying AUD may see some opportunities if today’s estimates are positive, however should you be selling you will find it difficult to find a better time to sell AUD. Rates have moved some 8% since the start of the year, a pretty good return in anyone’s eyes and a real opportunity should you be selling.

To discuss the best way for exchanging your currency and to see what rates we can achieve then please contact the office on 01494 787478. Alternatively please email me with a brief description of your currency requirement and I will happily run through the next step and types of contracts we can offer. Please email Mike at [email protected] for more information.