Last week saw the Chinese Stock Markets circuit breaker being brought in to play on more than one occasion. On the second time this occurred it only took 25 minutes for the breaker to cut in after a drop of more than 7%. The trend was set to continue for the rest of the week until sanctions were put in place to limit the amount of stock an individual could sell and the circuit breaker was removed. This has brought some stability to the market, but this has not been kind to AUD.
There has now been 10 consecutive months of a a slow down in growth in China, inflation figures were also released on Saturday and were below par. Australia’s economy is suffering heavily due to its reliance on exports to China. The Reserve Bank of Australia have stated there will be no drop in interest rates until after February, which could hinder a more aggressive strengthening of the pound over the Aussie. I would however expect GBP/AUD to break 2.10 over the coming weeks.
Unempolyment Figures are out on Friday, which could give a momentary reprieve for AUD but I would not base a trade on such a gamble. All fingers point to AUD weakness. If you are an AUD seller stop dreaming of the unobtainable 2.00 mark and bite the bullet, this could be a small window of opportunity.
If you have a Currency requirement I would be happy to assist, I will not only keep you up to dated with market movement to help you maximise your trade but I can also guarantee to beat any competitors rate of exchange.I have consistent large trades going through today , potentially I can tag new clients on these trades and gain a very competitive rate. If you have a currency requirement I would strongly recommend getting in touch by calling 01494 787 478 or e-mail me directly at [email protected] .Thank you for reading my blog it is greatly appreciated.