GBPAUD exchange rates have fallen from 1.81 earlier today as the US economy announced that the first quarter of 2014 was the worst on record since 2014. To me this was not that much of a surprise as half the country was blighted by one of the worst winters on record.
The US economy shrank by 2.9% according to the third estimate. Typically when the US has struggled this has seen global investors seek higher yielding returns for their money including investing into the Australian Dollar.
With interest rates very high down under this makes it attractive to hold funds in the Australian Dollar hence the strengthening during today’s trading session.
Bank of England governor Mark Carney is due to speak tomorrow and after yesterday’s comments that the UK will increase interest rates but at a slow and gradual pace this has dented confidence in Sterling over the last two days.
My personal opinion is that we’ll see Sterling fall across the board following the report and this could also see Sterling Australian Dollar exchange rates drop.
If you have a currency transfer to make and want to save money when transferring Australian Dollars compared to using a bank then contact me directly for a free quote Tom Holian [email protected]