Sterling Australian Dollar exchange rates have remained between 1.80-1.81 during today’s session following on from last night’s US Federal Reserve meeting. The current stimulus programme in the US has been cut by US10bn per month to USD35bn.
This is likely to encourage global investors to move away from the USD and invest in higher yielding currencies. Typically, this would have strengthened the Australian Dollar but with Bank of England governor Mark Carney last week saying that UK interest rates could rise sooner than the market currently expects then investors have also chosen to buy Sterling.
This has kept GBPAUD rates at their recent levels.
UK Retail Sales did come out lower than expected at -0.5% compared to the month before, however the fall on exchange rates only lasted for the morning.
Over the weekend the Chinese will publish manufacturing PMI data. Expectations are for 49.4 and anything lower than 50 on the scale represents a reduction so if this comes out we could see less investor appetite for the Australian Dollar.
This could push GBPAUD rates higher over the weekend.
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]