Huge Strength for the Australian Dollar vs Sterling following Poor UK Data (Tom Holian)

Australian Dollar Strength as Travel Corridor with New Zealand Opens

The Australian Dollar has seen a huge fightback vs Sterling over the last few days which has come as a big surprise to the currency markets.

With oil prices and commodity prices falling to their lowest price in years this would typically have weakened the Australian Dollar but the reverse has happened and we are now approaching the second lowest level to buy Australian Dollars since mid-July.

With US data coming out stronger than expected and with growth having been revised up for the world’s leading economy this has seen investors looking again at riskier commodity based currencies including the AUD, NZD & ZAR which have all gained vs Sterling.

The UK Public Sector Net Borrowing figures released early this morning has seen Sterling exchange rates fall across the board and with the Christmas break only days away this leads to a thinning of trading volume, which can lead to increased volatility and the markets over reacting to any economic data releases.

Tomorrow we see the release of UK GDP figures for the third quarter and although these are revised we could see more excessive movement for exchange rates before the end of the year.

If you have a currency transfer to make involving the exchange of Australian Dollars and would like 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

Alternatively call me directly by ringing 01494787478 and ask to be put through by the reception team.