Sterling Australian Dollar exchange rates have this week hit their lowest level to buy Australian Dollars since January 2015.
The UK announced that their trade deficit was massively higher than expected coming out at -£32bn instead of the estimate of -£20bn.
This caused Sterling to fall against all major currencies including the Australian Dollar.
The US jobs report published yesterday afternoon also gave the AUD some further strength as often what happens in the US impacts upon the AUD.
The US confirmed another 215,000 new jobs were created and as the world’s largest economy shows signs of strengthening this encourages global investors to seek slightly riskier higher yielding currencies which includes the Australian Dollar. Good news if you’re looking to convert into Sterling.
Tuesday could be a very eventful day for the Aussie Dollar when the economy releases both Import and Export data as well as their own set of Trade Balance figures.
This will be closely followed by the Reserve Bank of Australia announcing their latest interest rate decision.
The central bank have suggested in recent times that they are relatively comfortable with where interest rates are so I don’t expect to see any change this month and so we could see further strength during the course of next week.
Turning the focus back to the UK again the Brexit fears are weighing heavily on Sterling exchange rates at the moment.
A recent poll showed 49% of people wanted to stay in the European Union with 41% voting the leave with the rest undecided.
All this uncertainty is not good for Sterling and another reason for rates to be at their lowest point in 15 months.
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]