Aussie Unemployment Causes Dollar To Drop (Colm Gilhooly)

Australian Dollar to Pound Rate Continues to Remain in Monthly Range

A sharp increase in the Aussie unemployment rate overnight from 6% to 6.4% has caused the Aussie Dollar to drop over 1 cent against the pound and the Dollar and nearly 1.5 cents against the Euro.  Whilst the RBA seem comfortable with interest rates Down Under, so the RBA statement tonight may not have a huge impact if they stick to this mantra however there could always be some speculation around this.

The Bank of England didnt alter monetary policy today and as I have been saying all along I don’t see there being a huge change in GBP AUD rates until one or other central bank makes a move, or indicates a change is coming.  Therefore the spikes and troughs caused by the various data releases are where I would look to strike a deal and make the transfer.

There was no change in ECB policy today so soon after the rate cut last month, but the press conference was closely monitored for future policy clues and Draghi did manage to give the Euro some temporary strength during the course of this (only for it to slip back a little towards the close of business).  He said the ECB have intensified preparation for some form of bond buying program if the inflation rate dint turn around soon- QE in the States and the UK weakened the respective currencies so I think the Euro may remain under pressure as a result.

If you would like to transfer money to or from Australia and would like to find out more about our currency transfer service, then feel free to email Colm at cmg@currencies.co.uk and I would be happy to help.