Positive Chinese economic data hits recent rally on GBP/AUD (Joshua Privett)

AUDGBP Still Grinds Lower Ahead of BoE Rates

Since August the main weight which has been dragging down on Australian Dollar value, and therefore causing GBP/AUD to rise, has been events over in China – Australia’s main commodity export customer.

During November GBP/AUD plummeted from 2.15 to 2.03 with a mixture of positive Australian employment and financial news combining with the announcement of a year-long delay for the UK to raise our base interest rate, which had previously been a hallmark of Sterling’s strength throughout the year.

One of the few elements which has halted this recent Australian Dollar rally from reaching further had been the still uncertain situation in China. However, the string of poor data releases has finally halted overnight with China posting positive inflation figures and finally moving themselves out of negative territory, compared to the UK who are still struggling below 0%.

The positive news should stimulate very noticeable confidence in the Australian Dollar, however, overnight releases in China normally have a delayed fuse on currency exchange rates, as UK and US markets still have to open to trade on the news.

GBP/AUD have been on a severely negative trend in November, and this slight respite since the start of December now seems set to be reversed as the day continues. Those looking to buy Australian Dollars should now be looking to move sooner rather than later with the current GBP/AUD rate just under 2.09.

I strongly recommend that anyone with an Australian Dollar buying requirement with Sterling should contact me on 01494 787 478 and ask the reception for Joshua to discuss a strategy for your transfer in order to maximise your Australian Dollar return. I now have a number of Australian Dollar transfers being conducted today which will allow me to achieve a more competitive rate of exchange on your purchase.

Those who do not need Australian Dollars until later in 2016 can also peg the currently favourable rates whilst they are still comfortably above 2.0 to avoid any harmful movements on your transfer. [email protected]