US Interest Rate Rumours causing Australian Dollar Weakness (Tom Holian)

Pound Pushes Higher Against the Australian Dollar on Recent Economic Divergence

GBPAUD exchange rates have strengthened recently as rumours persist of an interest rate hike in the US.

With last Friday’s jobs data much higher than expected with 271,000 new jobs created compared to the target of 200,000 this has increased the likelihood of an interest rate rise in the US in December to 70%.

What this means for Sterling vs the Australian Dollar is that investors will look at selling off riskier commodity based currencies in favour of the US Dollar and this has also been proved over the last few trading sessions with Sterling rising against the Australian Dollar.

Chinese Retail Sales as well as Industrial Production data is due out in the morning and with Chinese data having been mixed to say the least in the last few weeks if the data is worse than expected we could see Sterling rise vs the Australian Dollar during early morning trading.

UK unemployment data is also due out in the morning and with unemployment having fallen in the UK for most of the year any improvement could also see Sterling strength.

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 teh@currencies.co.uk