Australian Dollar strengthens against Pound Sterling owing to positive US GDP data (Tom Holian)

Commodity Based Currency AUD Struggles During Global Uncertainty

US GDP data published this afternoon for the second quarter of 2016 has been revised upwards to 1.4% from 1.3%.

Indeed, US unemployment data, retail sales and inflation are all showing positive signs and this has furthered the argument that the US is gearing up for an interest rate hike prior to the end of the year.

The Australian Dollar has strengthened vs the Pound to below 1.70 on the Inter-bank level providing some excellent levels to sell Australian Dollars into Sterling.

The change in leadership for the Reserve Bank of Australia has had little impact on GBPAUD exchange rates and although I expect Sterling to recover in the longer term once the issue of Article 50 has been resolved I think the uncertainty surrounding the future of the relationship between the UK and the European Union could keep Sterling under pressure against the Australian Dollar.

Tomorrow morning could be the tipping point for the short term trend for Sterling vs the Aussie Dollar when revised UK GDP figures are released for the second quarter. The expectation is for 0.6% growth so anything different could cause some volatility between the GBPAUD rate.

If you’re in the process of making a currency transfer over the next few weeks between Sterling and the Australian Dollar and would like to avoid the uncertainty of what may happen to rates it may be worth considering buying a forward contract which allows you to fix an exchange rate for a future date.

I’m celebrating my 13th anniversary today as a currency broker and would be delighted to offer you a rate to convert Australian Dollars compared to using your own bank. Working for one of the UK’s leading independent currency brokers I’m confident that I can save you money on exchange rates.

Email me directly or fill in the box below. Tom Holian teh@currencies.co.uk [contact-form to=’teh@currencies.co.uk’ subject=’Blog ADF 29/9/16′][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Currency Requirement’ type=’textarea’ required=’1’/][/contact-form]