GBPAUD exchange rates dropped yesterday as official figures showed that Aussie retail sales rose by 1.3% in February and building approvals also rose by 3.1%. It is difficult to see GBPAUD exchange rates get back towards previous years as the country’s natural resources and successful mining industry continues to boom.
According to the Markit Purchasing Manager’s Index this morning the UK Service Sector has grown at its fastest rate in 7 months and provides us with signals that the UK economy may have avoided falling back into recession. The survey figures showed a rise of 52.4 last month from 51.8 in February and anything above represents expansion. official figures showed that the UK economy contracted by -0.3% in the final quarter of 2012 and if we see the same in Q1 we could see the UK enter the third recession in five years.
All in all the UK does not seem to be in a very good state and it could be argued that if things continue we could see Sterling Aussie rates drop towards 1.40 rather than towards 1.50. The Olympics gave the UK a little boost during 2012 but this seems to have papered over the cracks.
Later today we could see some large movement on the fx markets as both the UK & Europe announce their interest rate decisions at 12pm and 1245pm respectively. If you have a currency requirement and want to ensure you are getting competitive exchange rates feel free to contact me for a free quote.
Please quote ‘FREE QUOTE’ in the title of your email and include some details about your particular requirement. Tom Holian [email protected]