Sterling has continued to perfrom well against the AUD of late with the markets rangebound between 1.62-1.67 over the past month. These levels were unthinkable only a few months ago and Sterlings rise has coincided with the recent interest rate cut by the Reserve Bank of Australia (RBA), who were becoming concerned about the strength of the AUD and the negative affect it would have on their affluent export industry. There has also been a slowdown in China’s economic growth and their demand for Australias raw materials, which has also become a cause for concern.
Many clients who are looking to buy AUD are now waiting for the next decisive move and if economic data is to be believed this could be as early as tomorrow, follwoing the release of UK Gross Domestic Product (GDP) figures. This release is one of the key dates in the economic diary, as it will give us an indication as to how the UK economy has perfomed during Q2 of this year. Figures are expected to show growth of 0.6% and if this prediction is correct we will most likely see Sterling gain momentum in the build-up to the 09.30 release. If the figure deviates from the prediction we are likely to see additonal market volatility either way.
If you do have an upcoming currency requirement and would like a comparative exchange rate against your current provider, or would like to be kept up to date with all the relevant market movements then please call one of our brokers today on 0044 1494 787 478, or you can email me directly at [email protected].