Chinese Banking Issues could cause problems for the Australian Dollar (Tom Holian)

AUDGBP: Australian Dollar Weakens in Worst COVID-19 Day Yet

The Chinese economy is coming under pressure again as they reported a lower than expected drop in their foreign exchange reserves of US$100bn which is the lowest level since 2012.

The effect this has for the Australian Dollar is that the less money available in China could reduce the demand from China for Australian resources and with the price of nickel having fallen dramatically recently I think we could see some problems early in the week for the Australian Dollar exchange rate vs Sterling.

Combined with the issues with the US jobs data on Friday we could see the AUD under pressure this week.

However, there are potential pitfalls for Sterling during the course of this week with the release of UK Industrial and Manufacturing data on Wednesday.

Last month saw the lowest levels in 6 years and I think we could see more of the same.

Wednesday also sees the release of NIESR GDP data and with UK GDP downgraded not that long ago and the global slowdown causing problems I think the data could be low causing a problem for the Pound across the board against all major currencies.

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]