Sterling Aussie Reaches Record High (Tom Holian)

Commodity Based Currency AUD Struggles During Global Uncertainty
Tom Holian

Sterling has once again rallied against the Australian Dollar and hit recent record highs and traded above 1.90 during today’s trading session. With the recent good news about UK Retail Sales and UK unemployment this has sent Sterling rocketing against many currenices incluidng the Australian Dollar.

This morning’s data from China was poor as was the inflation data released in Australia. A survey released in the US this afternoon showed that confidence is low in the world’s leading economy which has seemingly panicked global investors as it measures future trends in the US. As the US is seen as the global barometer for economic confidence this has resulted in Aussie weakness particularly against Sterling.

Bank of England governor Mark Carney is due to speak tomorrow and I think we could see a massive correction for the Pound. With the unemployment data out this week putting pressure on the BoE to change interest rates sooner than first expected I think he may come out tomorrow to re-iteretae that interest rates will remain the same for a long time to come.

If the Pound increases by too much is a short period of time this often results in a rebounding effect so I think this opportunity to buy Australian Dollars at this recent high may be short lived.

If you have a currency transfer to make and want to save money compared to using a bank then contact me directly Tom Holian teh@currencies.co.uk