Sterling has regained its recent falls against the Aussie Dollar a fortnight ago as the Chinese announced on Wednesday a big fall in inflation.
Indeed, the figure was the lowest level in almost five years causing worry for the economy down under. The reason why this could impact the Australian Dollar exchange rate is because China is the biggest trade partner for the country and any signs of a slowdown is likely to cause a negative effect on the AUD.
With fears of a global slowdown this often causes investors to sell off riskier currencies including the AUD, NZD & ZAR so I think we could see the AUD start the week off with a fall against the Pound.
The Reserve Bank of Australia publishes its minutes on Tuesday and with Chinese GDP also due out I expect to see a huge amount of volatility over the next few days for the Australian Dollar. Expectations for Chinese GDP are for growth of 7.2% so anything lower could see the Australian Dollar weaken.
If you’re worried about what may happen with AUD exchange rates and would like to save money on exchange rates compared to using your bank then contact me directly for a free quote Tom Holian [email protected]