RBA Minutes (Tom Holian)

AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

The Reserve Bank of Australia meeting minutes out earlier today showed that the recent budget has potentially subdued the economy.

Growth in January was strong down under but sales have slowed down over the last three months and the bank went on to say ‘growth had further moderated in May.’ This is part of the reason for the weakening for the Australian Dollar during the last 2 trading sessions.

Consumer confidence has dropped over the last month and the budget is being partially blamed.

Foreign investment into China has fallen in May to its lowest level in 16 months which has also led to less investment in Australia. The fall was a much as 6.7% in China compared to this time last year  and with lower prospects this is likely to have a negative impact on the Australian Dollar.

Tomorrow morning the Bank of England minutes are published and i think we could see some comments about a rate rise sooner than expected which will reiterate the comments made last week by Bank of England Mark Carney.

Therefore, I would expect GBPAUD rates to rise tomorrow.

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 teh@currencies.co.uk