At the start of the year it looked as though Sterling may fall below 2 vs the Australian Dollar but during the first week the Chinese stock market had to be suspended twice owing to such dramatic falls.
Sterling Australian Dollar rates have moved erratically this week following on from the contradictory Australian unemployment data which showed a fall in unemployment but also a fall in the participation rate so one cancelled out the other.
On Tuesday the Chinese release GDP figures and with such a terrible start to the year for the stock market we could see further volatility if the data come out negatively.
The expectation is for 6.8% growth and if the figures come out poorly then we could see some huge movements for Australian Dollar exchange rates as it will highlight that the global slowdown is gathering pace.
If you’ve been reading my articles for a long time you’ll know how much influence any Chinese data has on the Australian economy and therefore the exchange rates.
Chinese Retail Sales are also due out on Tuesday and we could be in for a huge day so it is important to make sure that you’re using a currency broker this week to be kept up to date with exchange rate movements.
If you have a currency transfer to make whether buying or selling Australian Dollars 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]