Today marks once of the few occasions each month where events in the US govern the entire currency market, even the value of the Australian Dollar.
This is the release of non-farm payroll data in the US at 13:30 UK time.
The link between the US and Australia in these instances is quite stark. If the data comes in well, normally the US Dollar becomes a more attractive prospect for investors, despite yielding a quarter the interest that the Australian Dollar yields. This is because the Australian Dollar’s dependence on the commodities market makes it a riskier prospect.
However, if the US data comes in lower than expected, the net trend is to buy up high yielding riskier currencies in the hope that the higher interest will provide greater returns than a more stable, but under-performing economy linked to the US Dollar.
Any situation where the Australian Dollar is bought up quickly will see the Dollar strengthen through higher demand and make any GBP/AUD transaction a more expensive prospect.
GBP/AUD has already started trickling downwards ahead of the announcement. This is because data a few days ago showing that jobless claims in the US had risen last month and is an indication that the new jobs report as a whole may reflect a negative picture of the US.
Should these results come in as expected we will most likely see a heavy slide on GBP/AUD as this will be the first negative look at the US jobs market in months.
I strongly recommend that anyone with an Australian Dollar buying requirement should contact me by calling 01494 787 478 and asking the reception team for Joshua in order to discuss your options and receive a free, competitive quote to maximise your Australian Dollar return.
If you are in the unfortunate position of not being able to move immediately, then we can still discuss the possibilities open to you in using a specialist currency broker to minimise your risk in a volatile market place.
I have never had an issue beating the rates of exchange offered elsewhere, and anyone selling Dollars can also get in contact and I can explain the best and most secure way to ride the expected movements in your favour within the time period you have to complete your transfer. email@example.com