GBP/AUD rates remained flat during Thursday’s trading ahead of key economic data releases overnight. We have Australian inflation data, which if positive could help push the AUD back towards 1.80. It did seem as if the AUD was building momentum earlier this week and if Chinese PMI data early tomorrow morning is positive, it is highly likely the AUD will benefit from this.
Australia relies heavily on its export trade and with China being its largest trade partner, the Australian economy is extremely reliant on positive, continued growth in the Chinese economy. It was no coincidence that when Chinese economy stagnated, the AUD lost value against most of the major currencies. Of course there are other variables to consider but it is one of the key reasons the RBA were keen for Australia to expand their trade arms (as proven with their recent trade agreement with Japan).
Personally I feel that GBP will struggle to move back to the four year high witnessed against the AUD at the turn of the year but current levels still offer some fantastic buying opportunities. It may be prudent to consider a forward contract, in order to protect yourself against future market losses.
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