GBPAUD exchange rates have dropped from above 1.81 into the 1.79 levels during today’s trading session following on from a very strong business outlook survey released by the Australian Bureau of Statistics.
The mining industry was predicted not to drop as much as previously expected and investment in services is expected to rise as well.
The price of iron ore has recently dropped to its lowest level in 2014 following a reduction in Chinese demand and this weakened the Australian Dollar at the start of the week.
As things have picked up in the economy the Reserve Bank of Australia is likely to be happy as it will be less pressured to have to change monetary policy.
However, my personal feeling is that although the recent data appears quite strong I still think the economy is too reliant on the mining industry which has certainly slowed down over the last 12 months.
When an economy is too reliant on one sector as soon as that part of the economy slows it can often have a huge negative effect. This is why I think longer term we’ll see GBPAUD rates higher than where they are trading at the moment.
If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly Tom Holian [email protected]