The continued problems for the Chinese stock market has seen Sterling improve by over 6 cents during the course of the week against the Australian Dollar or the difference of £2,900 on a currency transfer of AUD$200,000.
China has recently devalued the Yuan and then at the same time has also announced their biggest month on month drop in its fx reserves.
Oil prices are at a 14 year low today and as China accounts for approximately 17% of the world’s economy any slowdown has not only a big impact on the global economy but more importantly the value of the Australian Dollar.
China is Australia’s biggest trading partner so any problems there will often weaken the Australian Dollar.
With iron ore prices having risen over the last 2 weeks up until Monday GBPAUD rates were getting close to hitting 2 but the enormous change for China is likely to cause even further weakness for the Australian Dollar creating some excellent opportunities to buy Australian Dollars with Sterling.
Australian Retail Sales are due to be released in the morning and if better than expected could see some brief respite for the Australian Dollar however I think whilst the uncertainty remains in China this is likely to see GBPAUD rates improve.
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]