English Australian exchange rates will be determined by the Americans!

AUDGBP Slumps Despite a Surge in Employment

The big driver on the Australian exchange rates has been global attitudes to American politics and their economy. Whilst the Aussie strengthened slightly at the prospect of no further rates cuts the US has been the main driver.

The shut down in America is bad news for the AUD because it gives rise to global economic uncertainty. The flipside however is that the shutdown could lead to a slower US economy which in turn would lead to less chance of QE tapering. This will likely cause the AUD to strengthen down the line although it may get worse before it gets better!

The more immediate impact on the market appears to be that of AUD weakness. Consequently any news that in fact the political situation will be dealt with, should cause the AUD to strengthen as global confidence improves.

Quite likley too, to cause movement in the coming days is Chinese PMI (Purchasing Managers Index) economic data which can impact investors attitudes to the Australian currency by indicating how the Chinese economy is performing.

If you are buying or selling Australian dollars in the future, our service is designed to get better rates and offer assistance with the timing of any exchange too. For more information on getting the best deals please contact me Jonathan directly on [email protected]