Strong US GDP Weakens the Australian Dollar (Tom Holian)

AUDGBP Advances from 2020 Support Level

Sterling vs the Australian Dollar has broken through 1.81 again following the very strong data from the US published yesterday afternoon.

US GDP was confirmed at 4% and was a huge increase compared to the first quarter which only just hit 0.1%.

Personally, I was not surprised at the figures as prior to the first quarter the US economy was in a good place and most of the economic data was relatively positive. During the first three months of the year a large part of the country was covered in snow which meant that business in some parts came to a standstill.

With the US economy now back on the right path this could mean global investors ploughing their funds back into the US and taking it out of the Australian Dollar. This could be one of the reasons for the overnight weakness for the Aussie against Sterling.

Buildings approvals down under have also taken a turn for the worse and showed a fall of 5% in June. May’s result showed a jump of 9.9% so it shows how volatile this market is and when markets moved so dramatically this can often be unsettling for the currency involved.

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]