GBP/AUD rates climbed to 2.20 from a low start of 2.18 today. With a data-light start to the week the Australian Dollar had actually made gains against most major currencies throughout the day. Recoveries were noted for AUD/USD, AUD/JPY and AUD/NZD. When data is light and few political events are under scrutiny then normal market forces take effect. As the Australian Dollar is currently so cheap, the incentive is to buy rather than to sell. With those kind of net flows this drives up the value of AUD through increased demand.
GBP/AUD was the only exception. This sudden increase in Sterling strength came from the unexpected announcements of the sale of Tesco’s South Korean arm, Homeplus, for the amount of £4.2bn. The transition of capital into Sterling following the sale significantly strengthened the Pound across all currency pairings today.
Overnight China will be releasing its import and export data for the month of August. Though the Australian Dollar rates have been dependant recently on developments in China, this is unlikely to affect rates heavily. Markets have already priced in Chinese market weakness, so the only outcome which could affect AUD rates would be more positive than expected data, which in turn will lower GBP/AUD rates.
I strongly sugggest that those with AUD to contact me directly on [email protected] for a free quote on your transfer. Rates had stagnated following Black Monday, and this sudden gift of Tesco’s repatriation of funds should not be squandered – particularly since the AUD is currently strengthening. Quote this article on your email for tailored advice on your transfer and a guarantee to provide the most competitive rate on offer for both retail and commercial markets.