Australian Dollar under new pressure following US Jobs Report (Tom Holian)

AUDGBP Lower After Melbourne Sees Travel Restricted

The Australian Dollar has had a good run vs the Pound in the last fortnight as the Bank of England governor Mark Carney stated that UK interest rates are unlikely to be increased until earliest Spring 2017.

However, on Friday afternoon the US economy announced a further 271,000 new jobs had been added compared to the target figure of 200,000.

The announcement helped to strengthen the US Dollar vs all major currencies as it puts more pressure on the Federal Reserve to look at raising interest rates in the near future.

This means global investors are likely to sell off riskier commodity based currencies in favour of a return to the safe haven of the US Dollar and I think we’ll see the Australian Dollar weaken during the early part of this week.

With Chinese growth slowing down and less demand for Australia’s natural resources this is good news for the RBA as they appear to be trying to weaken the Australian Dollar without using an interest rate cut down under.

A weak AUD is in the interest of the RBA as they want a weak currency in order to help Australian exports.

Chinese inflation data is published on Tuesday and with almost all major economies seeing falls for inflation this could signal further Australian Dollar weakness on Tuesday vs Sterling.

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]