RBA Meeting Minutes (Tom Holian)

AUDGBP: Australian GDP Disappoints, AUD Weakness

Sterling Australian Dollar exchange rates have fallen below 1.80 again towards the end of last week following the Budget out down under. Although Chinese data was lower than expected during last week the Australian Dollar strengthened possibly, it could be argued, by the uncertainty happening in the Eurozone.

The RBA meeting minutes are due out on early Tuesday morning UK time so this could cause some volatility for Australian Dollar exchange rates. The UK releases a whole raft of data on Tuesday including inflation data which for the first time in many years has been overtaken by  wage inflation which is great news for the British economy.

With the UK growth forecast raised recently by the Bank of England many analysts thought that the Pound would strengthen over the last few days  but it has faltered trading either side of the 1.80 level.

On Wednesday the Australian Westpac consumer confidence survey is due to be released and again I think this will see the Australian Dollar move quite quickly.

Personally speaking I think the Australian economy is having a few issues particularly highlighted by what happened to exchange rates during 2013. I don’t think the problems have disappeared so I think it’s only a matter of time before GBPAUD rates go in an upwards direction again.

However, one note of caution is that given by the Bank of England over the weekend which focuses on the bubble that is the UK housing market.

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