Although the Australian stock market has lost AUD$85bn the currency markets have seemed to settle today for GBPAUD rates.
Having moved by 6 cents since the start of trading on Monday the Chinese stock market has actually picked up by 2% during today’s trading session which has helped put a stop to the recent bout of Australian Dollar weakness.
The Aussie stock market has had its worst week since September 2011 and their worst start to a year since records began.
Further volatility is expected this weekend when the Chinese announce their Consumer Price Index which is a measure of inflation and if we see falls from the expected 1.7% this could see Sterling vs Australian Dollar exchange rates move in an upwards direction and may look towards 2.10 in early trading next week.
The UK economy has been showing signs of faltering over the last few months and with Chancellor George Osborne stating that the UK is still in trouble it appears as though this has not yet been reflected in GBPAUD rates.
Arguably the most important influence is coming from China which is having the biggest impact on Australian Dollar exchange rates.
Later in the week Australia publishes the unemployment rate with expectation for 5.9% and any change is likely to cause more volatility.
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 [email protected]