Sterling vs the Australian Dollar has fallen by over 5% recently following a 6 year high to buy AUD$ last month.
With commodity prices having fallen to a 16 year low year last month this was what has previously caused the AUD to weaken.
However, as fears of a global slowdown have been partially allayed by IMF chief Christine Lagarde this has led to a bit of confidence returning to the Australian Dollar.
The news of the UK GDP being downgraded recently from 2.6% to 2.4% and the US deciding not to increase interest rates for the world’s leading economy this has renewed investor confidence in the AUD.
Indeed, the US Federal Reserve has decided not to raise interest rates and their minutes from earlier this week suggested that owing to to the slowdown in China they may not raise rates as soon as previously thought.
UK inflation data due out on Tuesday could reaffirm the Bank of England’s recent decision to keep interest rates on hold at an historic low.
The expectation is for 0% so anything lower could add more support to keep rates on hold for a long time to come in the UK.
Later this week Australian unemployment data is released.
This could put paid to recent advances for the Australian Dollar vs Sterling as if the data is poor we could see the AUD weaken.
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 [email protected]