The Pound has made gains vs the Australian Dollar during today’s trading session as the UK economy opened for business again following the bank holiday weekend.
There has been little economic data published today so the market is probably still reacting to UK economic releases including GDP and Retail Sales from last week.
Australian retail sales are due for release on Thursday but arguably the biggest catalyst for movement is likely to come on Friday afternoon when the US announces non-farm payroll data which measures unemployment levels for the world’s leading economy.
With the Federal Reserve gearing up for a potential interest rate hike in the near future if the data comes out positive it could force the Fed’s hand which could cause Australian Dollar weakness.
My reasoning is that if the US increase interest rates then this could potentially encourage investors to sell Australian Dollars in favour of US Dollars as a more attractive yield.
Indeed, although interest rates are still lower in the US than in Australia ultimately if the economy is doing well then this could weaken the AUD creating some potentially better opportunities to buy Australian Dollars with Sterling.
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]
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