Sterling vs Australian Dollar exchange rates have remained strong following the release of UK manufacturing out this morning. The sector has expanded higher than expected in April to a 5 month high boosted by domestic and international orders. The level of 57.3 in April was higher than the forecast of 55 which has given Sterling a boost across the board against all major currencies. Anything above 50 represents expansion so a good reason for the Sterling strength this morning.
UK GDP has also grown by 0.8% compared to the previous quarter so Sterling has had a good run of late. UK unemployment has fallen to its best level in 5 years at 6.9% and UK house prices have risen by double digits all leading to Sterling gains.
The Australian Dollar has also weakened overnight owing to the lackluster figures from US GDP which came in at just 0.1% against the expected 1.1%. This was largely due to adverse weather conditions but clearly signs that the world’s leading economy is going through a tough time. If things are difficult in the US this often leads to less risk appetite for global investors and often tends to weaken the Australian Dollar.
The Fed also continued their taper now at US$45bn and with less available money in global markets this has also weakened appetite for the Australian Dollar.
I think this current trend will continues particular if US jobless claims at 130pm today come out lower than expected.
If you have a currency requirement to make and want to save money compared to using your bank then contact me directly for a free quote Tom Holian [email protected]