At the beginning of the week Sterling rocketed against the Australian Dollar due to the suspension of the Chinese stock market. The stock market dropped by 7% and has been put down to poor Chinese manufacturing data in December. For people buying or selling a substantial amount of Australian Dollars for the first time, its important to understand the Chinese economy has a major influence on Australian Dollar exchange rates.
The week started with GBPAUD fluctuating in the 2.02s and due to China’s woes GBPAUD increased by 6 cents by the end of trading on Friday.
Economic data this week:
- UK Industrial and Manufacturing production numbers, Tuesday 9.30am
- NIESR GDP Estimate Tuesday 3pm
- Chinese Trade Balance, Wednesday 2am
- Employment Data, Thursday 12.30 am
- BoE Interest Rate Decision, Thursday 12pm
The golden question is what next for GBPAUD exchange rates. Before the stock market suspension this week it appeared that GBPAUD would drop into the 1.90s. I believe once the Chinese stock market settles GBPAUD will drop again back towards the 2 level. If you have Australian Dollars to buy trading on the back of this spike may be wise.
If you are buying or selling Australian Dollars this week, month or year I would recommend getting in touch to put a strategy in place to maximise your trade. In order to protect you against market fluctuations we have different contract options available that will meet your needs and requirements. Therefore 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. Dayle Littlejohn [email protected].
If you want further information in regards to a specific currency pair that I have not covered (AUD/USD, AUD/EUR, etc) then feel free to email me with the currency pair and your individual requirement (buying a property abroad, paying a company invoice) and I will personally respond to you with a forecast and the buying process. [email protected] Dayle Littlejohn. Alternatively call 0044 1494 787 478 and ask the reception team to be put through to Dayle Littlejohn.