GBP/AUD rates of exchange move up sharply during trading today following some beneficial movements for Australian Dollar sellers overnight.
Some almost unbelievable employment figures were released for the Australian economy, reversing the losses for the Dollar when the unemployment rate rose last month. In total an additional 50,000 jobs were added compared to the 10,000 loss previously recorded.
This is why GBP/AUD fell to 2.12 overnight. As a comparison the US economy added around 250,000 jobs to their economy last month, but with a population which is 13 times larger than Australia – which explains why markets received the employment change so positively.
As my article from this morning noted I was expecting the rates to correct slightly higher after this last movement. This was because further hints were supposed to be laid out today for a interest rate hike for the US economy in December.
The interest rate in Australia is fantastic for current global standards at 2% compared to elsewhere. But a rise in the US is causing some AUD holders to change over to the US Dollar, with the expectations of greater gains on their capital in December. This sell-off of AUD caused it to lose value on the markets through reduced demand.
The above allowed GBP/AUD rates to ease back above 2.13, but the current forces causing AUD strength are set to be in place until FEB/MAR time. Traditionally the Australian Dollar has its strongest period during their summer due to a rapidly expanding tourist industry. Australia should continue to improve in employment, investment, and inflation figures as foreign and domestic tourists increase their spending habits on the island.
The news in the US has provided some short term relief for AUD buyers when rates were originally sliding against their favour.
As such I strongly recommend that anyone with Australian Dollars to buy over the next few months should contact me on [email protected] to discuss a strategy for your transfer in order to maximise your Australian Dollar return. There are some further data releases in the coming days which may improve your GBP/AUD position ahead of further falls.
I will remind regular readers that these currently high GBP/AUD rates of exchange can be pegged to avoid negative movements impacting your budget. I have never had an issue beating the rates of exchange offered by banks or other specialist currency exchange brokerages.
Those selling Australian Dollars, depending upon your timescale, can do the same and I can explain how to safely ride favourable movements during the coming weeks and months to their peak.