GBPAUD rates are staying steady this week, with little movement expected until at least Wednesday afternoon. As we enter the end of the month economic data, which is traditionally one of the main drivers for movement in the currency market, is rather thin and far between. On Wednesdays we see the latest FED decision in the US which will have an impact on the risk appetite of traders and therefore demand for the AUD. In this meeting they are widely expected to conclude their QE tapering program and potentially open the door to start the interest rate race. This is the topic which I expect to case the biggest change in market movement, when a central bank will change interest rates. Australia has entered a period of stability and the governor has suggested no change is expected in the near future. The UK has in turn continually pushed back their forecasts on change for about now to maybe 12 month further in the future. The US has also changed their views originally suggesting that they could start to raise rates 6 months after they finish their QE tapering, really meaning that Wednesday meeting could make a significant difference.
After Wednesday we start the next monthly cycle of economic data with a host of data form the UK, Australia, China and the US. Keep an eye out for reactions on the market after GDP figures in the US are released on Thursday. This will also be interesting as this is expected to show a contraction.
If you would like more information on what to potentially expect from the markets and how these could impact your currency transfers please feel free to get in contact my emailing myself directly. My name is Steve Eakins and my direct email address is [email protected]