Sterling vs the Australian Dollar has fallen at the end of the week owing to some very poor data released in the UK on Friday.
The week started strongly for the Pound and increased even further following the Australian unemployment figures which were the worst in over ten years down under. This sent Sterling in an upwards direction against the Aussie but Friday’s UK trade deficit which has increased swiftly changed the movement and sent Sterling plummeting against the Aussie Dollar providing some good short term selling opportunities to convert AUD into GBP.
The sanctions imposed on Russia could also be rather harmful for the British economy which trades approximately 7% of is exports with Russia. Germany is as much as 30% and with the UK and Eurozone so closely linked for trade this could have a negative impact for GBPAUD exchange rates if the sanctions continue.
When there is geopolitical uncertainty this often leads to riskier currencies including the Australian Dollar to weaken. However, as the US is involved in Iraq and the UK and Eurozone are impacted by the ongoing issues with Russia it could be argued that global investors are seeking safety in the Australian Dollar.
The largest trading partner with Australia is China and this morning showed Chinese inflation data as expected so this will likely give the Australian Dollar some short term strength going into early next week.
UK unemployment data is due on Wednesday morning and will closely watched by anyone with a GBPAUD currency transfer to make.
If you have a currency transfer to make and want to save money compared to using a bank or if you would like to compare rates against your own currency broker then contact me directly for a free quote. Tom Holian [email protected]