Falling Chinese Inflation helps to weaken the Australian Dollar vs Sterling (Tom Holian)

Australian Dollar Remains Resilient Despite Unemployment

Sterling Australian Dollar exchange rates have recovered during today’s trading session after falling as much as 5 cents during the course of last week.

Chinese inflation data showed the rate rise to 1.6% in July however this is still less than the government’s target of 3%.

Food prices helped to edge up the data but producer prices fell for the 40th month in a row.

Indeed, if you look at the fall in Chinese growth and the Australian Dollar vs Sterling this is following a very close pattern.

China has cut interest rates 4 times since the end of 2014 in order to improve the economy and get more people spending and now they may have to look at doing it again.

The level of growth in the world’s second largest economy is the weakest since 2008 and even though they are growing by 7% this will be difficult to sustain.

Therefore, this is helping to increase the value for Sterling vs the Australian Dollar exchange rate.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian teh@currencies.co.uk