Australian dollar shows a surprising gain – STEVE EAKINS

AUD GBP Trades Above 0.5300 Ahead of Consumer Confidence

BREAKING NEWS – The US has confirmed that they have come to an agreement to extend their debt ceiling.  This was a topic that almost closed the country earlier in the year for nearly 3 weeks.  Before today the deadline for this was mid-January but with this early agreement in place it leads the way for the US to start “tapering” their own QE program where they print $85 billion a month to boost growth.

Why is the US market of interest when talking about the Australian Dollar?

Well with Australia’s interest rates so high it is an attractive place to invest, it has benefited greatly from foreign investment recently with the cheaper money in the system. As the money flow will slow down the Australian dollar has weakened again pushing GBPAUD rates up by almost a cent from the low in today’s trading day.  Rates have remained volatile for this pairing with over a 4 cent move within 6 days.  Personally I think the trend of AUD weakness will continue to weaken now. So if you are someone looking to bring funds back from Australia I would suggest moving sooner rather than later.  If however you are someone looking at emigrating to Australia I think these levels will continue to climb up in your favour.

If you would like more information on this topic or with anything other currency please feel free to get in contact. We are well placed to help time the trade plus adding value with SPIKE NOTIFICATIONS, RATE ALERTS and CURRENCY STRATEGIES.  Contact the author for more information – STEVE EAKINS – [email protected]

View Steve Eakins's profile on LinkedIn