The Australian Dollar has remained strong against the Pound over the last few weeks and tomorrow’s Australian Unemployment figures are likely to provide the markets with a great deal of volatility. Expectations are for 6% so anything better could see further Aussie Dollar strength and reinforce signs that the Australian economy has turned a corner and begun to improve again.
Consumer inflation expectations are also released tomorrow and could provide us with clues as to how the RBA may react at May’s meeting. In February the RBA confirmed an end to their previous interest rate cutting cycle and since then the GBPAUD has moved by as much as 5% from the high to low.
Later in the afternoon tomorrow the Bank of England interest rate decision is announced. Personally, I don’t see any change in interest rates for a long time or even monetary policy as the QE from previous years seems to have worked its magic and the UK economy has for a long period of time seemed to go from strength to strength. However, what will be important to look out for is whether Governor Mark Carney makes any announcement on Forward Guidance.
Tonight’s news coming shortly will be the FOMC minutes. This includes the reasons behind the US’s recent decision to continue the taper and any confidence provided will encourage global investors to move funds into the Australian Dollar.
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