Yesterday there was a host of data out of the UK, which helped to strengthen the pound towards a three year high against the Australia Dollar. My personal view is that we are now at the top level that we will see this week for Australian Dollar Buyers. The reason for this jump is following UK Unemployment figures and Bank of England (BOE) minutes, which gives the market an insider’s view within the Monetary Policy Committee (MPC) within the bank.
The BOE minutes showed that the MPC voted unanimously for no change to either QE or interest rates, showing their confidence in the Pound. This is matched by the recent good economic data and the general “feel good” feeling that seems to be spreading around the UK. Unemployment figures stayed the same, but there was a surprising fall in the amount of people claiming jobseekers allowance, down to a three year low. The bad news was however is that wage increase still stands at 1%, far below the current level of inflation of 2.9%, meaning there continues to be a squeeze on disposable income.
Over the last 24 hours we have also had the minutes from the recent meeting within the Reserve Bank of Australia (RBA). This showed that the RBA expect inflation to stay steady, which the market views as a sign that any interest rate change is unlikely next month.
All of this points towards potential AUD strength to return in the near future. As a result, I personally think that current GBP-AUD levels represent a good opportunity for people looking at trading within the next week. If you are trading the Australian Dollar as part of a relocation, property purchase or holiday, feel free to contact us here. We have provided a pro-active service to our clients for over 14 years, helping them save money on their transfers. Simply put, if we could not save you money we would not be in business!
I’m confident that we can provide you both with competitive exchange rates and information, helping you make an informed decision as to when to make your transfer. Contact me through email at [email protected] or alternatively call 01494 787 478.