GBP/AUD rates of exchange are showing some positive movements again up to 2.13 as UK trading opened this morning.
Again this slight weakening for the Australian Dollar was due to further poor news concerning China released over the weekend. Compared to the near market-crashes from poor news released almost daily in August, this data was relatively tame.
Chinese growth has been downgraded from 7% this year to 6.9%. In the UK, such a change in growth estimates would have caused significant movement. But a 0.1% change on 2.3% growth forecasted isnt as significant as 0.1 percent on 7% forecasted.
So with rates weakening by over a Cent and GBP/AUD buying levels now comfortably above 2.10, buyers can breathe again in the short term that rates are no longer close to hitting 2.05 at the start of the month.
Tonight the minutes from the Reserve Bank of Australia’s latest meeting will likely set the tone for the week of GBP/AUD rates with few data releases from Australia, China, or the UK to have a significant bearing on exchange rates.
These minutes will not be from the meeting that day, but rather from their meeting at the start of the month where the RBA announced no cut will be taking place and rates will remain stable.
With the current economic climate caused by China, markets were pricing in the possibility of a cut, however, when this wasn’t the case, GBP/AUD dropped to 2.08 rather rapidly.
These minutes, as such, will have a positive tone to justify holding rates as they are. Previous speeches from Governor Glenn Stevens over the past month have been pointing to rising Australian employment and small recoveries in mineral prices to justify this confident position.
Positive tones will likely transfer into Australian Dollar strength, but the effect will be dampened as this is not a new announcement but an explanation for the more surprising news at the start of the month.
I strongly recommend that anyone with Australian Dollars to buy should contact me on 01494 787 478 and ask the reception for Joshua to receive a free quote on your transfer and to discuss a strategy on how to buy at the best GBP/AUD price within a given period. While the minutes may not move rates far against your favour, I cannot imagine the minutes will cause any Dollar weakness to help your position. We are now at the best time to buy AUD since the intial announcement of a rate hold, any repeat in the pattern will make your pruchase more expensive. [email protected]