The big news of the day has been the Australian unemployment figures out this morning down under. Although the data came out at 5.8% which was the expected figure the actual employment change was -22,600 which has led to Sterling increasing by already 1% during this morning’s trading session.
Exchange rates for Sterling vs Australian Dollar are again approaching 4 year highs seen recently and it may be worth making a currency purchase if you need to buy Australian Dollars in the short term.
The Aussie has also lost almost a cent against the USD following the jobs data. According to the Australian Bureau of Statistics the total number of people in work is 11.63 million.
Full time unemployment is now 8.068 in December. This is slightly worrying and could give rise to the RBA cutting interest rates in the near future. With no jobs increase during the last six months an interest rate cut would hopefully ease the pressure on the economy but also help weaken the Australian Dollar.
With Chinese demand having slowed, 8 interest rate cuts over the last 2 years and a lack of jobs growth this is all weighing heavily on the Australian Dollar and with rumours of further interest rate cuts down the line this is the reason why we’re seeing Sterling close to 4 years highs against the Australian Dollar.
If you need to make a currency transfer and want to save money compared to using a bank then contact me directly Tom Holian [email protected]