The AUD was given a boost last week following news that China’s economy grew more than expected in quarter three of this year. The Australian economy is heavily reliant on a booming Chinese economy, whose demand for Australia’s raw materials has continued to support the Australian economy through the recent global financial crisis. Other facets of Australia’s export industry have slowed down which make an active trade arm with China even more essential.
The Reserve Bank of Australia (RBA) are also keen to keep the value of the AUD under control, as they alluded to in their meeting earlier this month. A strong AUD is only going to harm their export industry, which needs to recover outside of the mining sector, in order to ease the growing burden that is being put on the Australian economy. If the demand for Australia’s raw materials wanes, then the high labour costs required to keep their mining sector affluent will be unsustainable and this could seriously damage the long-term growth prospects for the Australian economy.
If you have an upcoming GBP/AUD requirement and would like to be kept up to date with all the latest market movements, or just want a comparable rate with your current provider then please feel free to contact me directly at [email protected]. Alternatively you can call one of the team on 0044 1494 787 478.