Buying Australian Dollar rates will be affected by news on both sides of the world between this evening and late afternoon tomorrow in the UK.
To get us started this evening, Australian employment data will be released which is notoriously difficult to second guess. Just last month the increase in new jobs added to the economy doubled from what had been anticipated. Due to the relatively small size of the Australian population even a small difference between expectation and reality when these figures are released can make a striking difference in the price of the Australian Dollar.
I won’t try to second guess this news, but given that it will be the first time in 8 months that market expectations have been exceeded for two months consecutively, and given that the high tourist season still has not started yet, I think it unlikely that very positive news will be harming Australian Dollar buyers overnight.
Following this, the most important event of the month for anyone holding Sterling will be taking place, which is the Bank of England Monetary Policy Statement, interest rate decision and subsequent press conference.
No-one is expecting another rate cut. The questions to be answered are whether the Bank will need to up their current program of stimulus, and what their current outlook for the UK economy looks like.
In this instance some heavy indications have already been given. Mark Carney, the Governor of the BOE, gave a deposition to Parliament last week. Far from the standard grilling by MP’s, Carney was very casually able to list out surveys and data sets which point to the impressive impact the BOE’s initial intervention to protect the UK economy has had already on its ability to weather the storm of the Brexit.
We have seen the largest increase in business confidence from a single month in over 25 years in the manufacturing, construction and service sectors of the UK economy. Today’s stable employment data also suggests their is no heavy deterioration in economic activity in the short-term following the Leave vote.
The news will be coming out at midday tomorrow and will continue to impact rates well into the afternoon as the Q+A session with Mark Carney and other members covers multiple areas of the UK economy. The value of the Pound against the Australian Dollar will swing depending upon the positive and negative nature of each of these aspects.
The Pound is falling slightly on the markets ahead of the event as investors are simply relieving themselves of risk ahead of a potentially major market mover. But the indications and murmurings are in favour of those looking to buy Australian Dollars once the dust settles, so would could see a sharp and positive movement tomorrow for GBP/AUD as a short-term forecast.
With significant and prolonged events like this a premium is put on being able to move quickly and being informed of any sudden changes. With so many global investors interested in the outcome, opportunities may be around for only a few moments. During such times I offer a very proactive service to keep my customers informed of any opportunities immediately, and if you have a desired rate of exchange you are aiming for, then there are options to make sure such opportunities are seized instantaneously.
You can contact me on [email protected] to discuss the options open to you to safeguard your transfer and to maximise your potential currency return. I have never had an issue beating the rates of exchange offered elsewhere, and given that the average difference between the high and the low each day on GBP/AUD is 1.4 cents, a well timed transfer could theoretically save you thousands on your purchase.
You can also contact me on the form below and I will respond to you as soon as I am available. Australian Dollar sellers can also get in contact for an immediate quote, or if your requirement is slightly longer term, we can discuss the potential opportunities further down the line.
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